Foreclosure In Idaho

Facing foreclosure in Idaho can turn home ownership from the American dream to the American nightmare. Even though foreclosure rates have dropped significantly since the height of the housing market collapse a few years ago, there are still a substantial numbers of bank owned properties in Rexburg and throughout Eastern Idaho.

If you have missed some mortgage payments and are worried about the possibility of foreclosure, we have some options you should consider:

Communicate with your Lender: Believe us, no lender really wants to foreclose. They would much rather find a solution. Depending on the type of loan you have, you might be able to increase the principal balance, extend the length of the loan, negotiate a lower interest rate, or otherwise adjust monthly payments. It never hurts to try, but you'll have to make the first move by being honest about the problem. Refinancing, or a Line of Credit might be options if you have excellent credit, substantial equity, other assets, and would like to remain in the home.
Sell Before Foreclosure: Depending on your equity, your local real estate market and your home's condition, you might be able to sell your home, pay off the mortgage and even walk away with some cash. If you have little equity, and can't afford to take a loss, ask about the possibility of a Short Sale. Sometimes you can sell, with your bank or mortgage company's blessing, for an amount less than the amount due. Check to see if that's an option in your case. You will, of course, lose what you have already paid, but it may be better than having a default on your record.
Rent To Stop Foreclosure: This is a good option if you have been transferred or are paying on two houses, and if market conditions make it possible. It's usually not a good choice if you'll have to find an apartment or another home. The rent you receive should cover mortgage, insurance, taxes and routine upkeep on the property, or it might be a bad idea that will just add to your debt load. But before you get shut out of your home and lose it to the foreclosing procedure.
Deed in Lieu of Foreclosure: If you have exhausted other options and just don't see another solution, talk to your lender about handing over the keys. It is sometimes called a "friendly foreclosure" and saves time, money and legal proceedings. It will appear on your credit report, but it is not as damaging.
Make Your Payments: This would be the best solution, of course, but it is also the most difficult. If you are determined, investigate all sources of funding open to you. Groups exist to aid military veterans and to help people with catastrophic medical debt. Financial hardships can be caused by a variety of events, including a change in family situation. Before you give up and give in to foreclosure, look into all public and private sources, including a loan from family members, to help you deal with a crisis situation.
Bankruptcy: You will need professional legal advice, but this is another option to explore if your financial difficulties extend beyond missed mortgage payments. Filing a personal bankruptcy might allow you to start over.

Facing foreclosure is stressful. As you weigh the pros and cons of "workout" options, keep in mind that the worst thing you can do is to simply stop making payments. Your choices depend on whether you must move (in cases of transfer to a new location or buying a new home) or you really want to stay. Whether you conclude that keeping your home is worth it, no matter how hard it might be in the short term, is another matter. One of our Rexburg real estate agents can help. Give us a call today.

Every situation is different, but if there is any way we can help, please don't hesitate to contact us. Foreclosure proceedings not only endanger your home, but they are stressful and have a negative impact on your credit for the long term.

How to Find Foreclosures

Bank owned REO properties are normally listed with a real estate agent. All of the current foreclosures in the Realtor database can be found on our East Idaho Foreclosure Listings page. Some bank owned properties are not listed. Some banks choose to sell foreclosed properties on auction sites. Your real estate agent can help you with this process as well.