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FORECLOSURE HOMEOWNERS FREQUENTLY ASKED QUESTIONS
HOW DOES AVALLONN WORK?
The Avallonn platform follows an easy three step process:
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Sign up.
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Tell us about you and your home.
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Upload pictures of the property.
After your profile is complete, we assess your situation and connect you to Investors best suited to meet your needs. Most decisions are made within 2-10 working days.
HOW MUCH DOES A MEMBERSHIP COST?
Avallonn memberships are free for our foreclosure clients.
WILL I HAVE TO PAY ANYTHING?
There are two fee schedules:
First, a $50 lien fee is applied to be split between the foreclosure homeowner and buyer for Avallonn 's name being recorded on the Title work.
The second applies to foreclosure and rental agreements. If you receive an offer and proceed to close, a monthly transaction fee will be charged to transfer your loan repayments to the lender. The transaction fee is 3.5% of your monthly repayment amount.
WHAT INTEREST RATE WILL A LENDER CHARGE ME?
Private lenders and Syndicates set their own interest rates per property. Rates aren’t automatically set and Investors will decide on the monthly payment amount after reviewing past payments made to your mortgage lender.
CAN I BE VICTIMIZED?
No. Although buyers can invest in multiple States, each State has a usury ceiling. When a loan commitment is made to a Borrower, Avallonn checks the Investors rates against a State’s usury amount.
WILL I HAVE TO WORRY ABOUT BALLOON PAYMENTS?
Balloon payments may be applied at the end of a loan term. But don’t worry. Avallonn will review the fee schedule to make sure you’re not paying too much at the commitment review stage.
DO I HAVE TO HAVE GOOD CREDIT?
No. If your home is in some stage of foreclosure your credit score has probably already taken a hit. Avallonn uses your home as collateral to ensure you don’t stop making your monthly payments.
CAN AN INVESTOR TAKE MY HOME WHENEVER THEY WANT?
No. An Investor cannot take your home from you under any circumstances.
CAN I BE EVICTED?
Yes. If you fail to make payments after 90 days, you will be removed from the property. But Avallonn and Investors safeguard against payment failures by offering alternative home options.
WHAT IS AN ALTERNATIVE HOME?
An alternative home is a residence owned by an Investor that is equal in value to your home in foreclosure. If you cannot afford to stay in your current residence, an Investor will offer you an alternative home in the same city. This home will have cheaper payments than the home you’re already in.
HOW DOES AN ALTERNATIVE HOME OPTION WORK?
If an Investor decides you don’t have enough income to cover the monthly rent of your peer loan, than they can offer you an alternative home.
WHAT WILL HAPPEN TO MY CURRENT HOME IF I ACCEPT THE ALTERNATIVE HOME OFFER?
An Investor can move tenants into the current home or sell it. But if you both agree to a Future’s Contract, the home will not be sold.
WHAT’S A FUTURE’S CONTRACT?
A Future’s Contract is an agreement that allows the foreclosed owner to buy their home back from a lender in the future, once they’re financially stable. But Future’s Contracts have rules:
There must be a financial insolvency so pressing that a current owner cannot realistically overcome hardship barriers.
A cash buyer does not have to agree to a future’s contract.
Future contracts must have a monthly sum paid toward home redemption, but only after a six-month time span. (Future’s Contracts are a kind of home layaway.)
If the pre-foreclosed home is rented when the future contracts foreclosed party redeems it, they will have to wait another six-months to take full ownership of the house. This way, residing tenants will not be displaced; the original cash buyer will not be upset; and the redeeming party will have ample time to schedule a move in.
CAN A FUTURE’S CONTRACT BE BROKEN?
No. But it can be sold to another Investor. If this happens, the Investor selling the contract doesn’t get to keep the funds paid toward the redemption. Those will automatically transfer over to the new owner.
DO YOU OFFER LOANS?
No, because this isn’t that type of community. We only connect foreclosure redemption homeowners with real estate Investors and professional property dealers (Vendors). Anything else is outside our wheelhouse.