FORECLOSURE Alternatives

Foreclosure Sign

 Foreclosure is NOT the only option! If you have experienced a hardship and cannot make your payments and you owe more than your home is worth, We can help. We will work with you and your mortgage lender to negotiate the sale of your home. Before entering into  a “Short Sale”  you should learn what options are available to you.

Foreclosure Alternatives

Do Nothing – If a homeowner does nothing, they most likely will lose their home at foreclosure auction.

  • Loan applications generally ask if the applicant has ever been foreclosed upon.
  • Credit reports also disclose this damaging information.
  • Not the best option.

Payoff/Refinance – Completely paying off the entire loan amount plus any default amount, closing costs and fees.

  • Usually this is accomplished through a refinance of the debt.
  • New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default.
  • With this option, there must be equity in the home. Not easy to obtain this loan.

Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

  • Not feasible or practical.

Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan.

  • This may allow the homeowner to catch up at a more affordable level.
  • To qualify, you must prove to the lender you have fixed the problem that caused the late payment.

Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation.

  • The lender may even be able to provide a temporary payment reduction or suspension of payments.
  • Information will be required from the lender to show that you are able to meet the new payment plan requirements.

Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing.

  • Banks generally require the home be well maintained, all mortgage payments and taxes must be current.
  • Most loan applications ask if this has ever happened.
  • Most banks will not accept this and each state has different laws that may restrict this.

Bankruptcy – This option can liquidate debt and/or allow more time.

  • We can refer you to a qualified bankruptcy attorney.


Chapter 7 (Liquidation) To completely settle personal debt.


Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.


Chapter 11 (Business Reorganization) A business debt solution.


Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid).

  • The homeowner may sell the home without lender approval through a conventional home sale.


Short Sale – also known as a pre-foreclosure sale, if the property has negative equity, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value.


The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem

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Rehabbing homes

Rehabbing homes in Today’s Market

Some say that the best strategy in this market is buy and hold, but rehabbing homes and selling for a profit is still a possibility.

With our extensive knowledge in “Distressed” Foreclosure sales, we can help you capitalize on this market.

Obviously this is not for everyone, but for many, this could be a great way to start investing in Real Estate.

We are experts in selling your home fast.

Nance & Associates, Realtors has been helping up-and-coming investors in the Fredericksburg area since 2002.

We offer the kind of service that is rarely seen in our industry: Locally owned, Professional and committed to our client.








Nance & Associates, Realtors

1930 William St, Fredericksburg, VA 22401

(540) 373-7474


Buying a home – 3 steps to get started

Nance & Associates Realtors logo

3 Tips to help you start your homebuying process.

Buying a home is exciting, but it’s not always the easiest process to start.
There are several things that you should do to get started in the home buying process and to make the process move much more smoothly.

Step 1

Contact the Nance Team, we are familiar with all of the latest financing options for first-time home buyers. Many are available with low down payments and some with no down payment if you qualify.

We will explain the buying process to you and help you locate a loan professional to get you pre-qualified for a home loan.

Step 2

Get pre-qualified for your home loan up front
This will let you know what types of homes you can afford, what your monthly payment would be and how much money you will need to purchase a home.

Begin to think about how much home you can honestly afford.

We have all had times when we might think, “Oh, $20 here and $50 there won’t break the bank”

Unfortunately, that can leave you with little money for a down payment.

Step 3

Research neighborhoods

Location is one of the most important things on most people’s list of needs when looking for a home.

You should also check into things like schools, shopping, and proximity to your place of work.

All of these things are very important and will likely influence how much you really like the home.

Some of these things may not seem very important when you are renting, but usually are when you plan on buying a home.

The Nance Team has the tools and resources to help answer your questions.

These three simple steps will help trim days, maybe even weeks off of the home buying process.

These are just a few of the things we suggest to start getting ready to purchase your home. If you would like to talk about these further, contact us at any time  at (540) 373-7474.

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Nance & Associates, Realtors
433 Elm St, Fredericksburg VA 22401
Office (540) 373-7474
Office Hours
Monday-Friday 09:00am - 5:00pm
Saturday 10:00am - 4:00pm
Sunday 11:00am - 4:00pm

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Disclaimer - Information is believed to be accurate, but should not be relied upon without verification.
Listing information may be from various brokers who participate in IDX and not all listings may be visible on the site.
The property information being provided is for consumers personal, non-commercial.