So much has change in the last several years for homeowners. Due to an uncertain real estate market, troubling national economy, and a spike in unemployment, homeowners are faced with the immense challenge of maintaining their mortgage payments, most living paycheck to paycheck. You may one of many homeowners who have taken a large pay cut, or had unexpected medical bills, or have lost your job entirely.
If you are feeling stuck in a home because you owe more on the mortgage than the home is worth., or your mortgage payment is no longer manageable, you are no doubt feeling an enormous amount of stress.
Facing a possible foreclosure causes emotional stress, but ignoring the problem will compound matters and carries long term consequences. Rest assured, foreclosure almost never needs to happen, especially in today’s environment.
Here are some alternatives to letting your home fall into foreclosure:
Temporary Forbearance Agreement – Under this workout option, the lender agrees to delay foreclosure and/or collection on your mortgage loan to allow you time to reestablish the ability to make your monthly payments. This option depends on your current ability to pay and the nature of your hardship.
Loan Reinstatement – This option requires you to pay the total past-due amount to bring your mortgage loan current. The lender may accept a loan reinstatement until the day of your foreclosure sale. In addition to the past-due monthly mortgage payments, late charges, and other amounts due on your loan. You may be required to pay all outstanding attorney fees and costs of collection to fully reinstate your loan.
Deed-In-Lieu of Foreclosure – The lender offers this option in limited cases, usually when a homeowner is not able to complete a short sale. The lender agrees to accept the title to your house to satisfy some or all of the debt you owe them.* You may not have to list the property for sale. You must be able to convey a clear and marketable title to your property, and vacate it once the title is transferred.
Short Sale – You list your home with a Realtor® of your choice. At the time your house sells, (depending on the offer price, net proceeds, costs and fees of the proposed short sale transaction), the lender may agree to take less than the full amount owed to them to satisfy some or all of your debt.*
This is considered by many one of the best options to avoid foreclosure. Most lenders would rather agree to a sale price that is less than the amount owed, than have another foreclosed property on their books.
Note: Beware of Foreclosure Rescue Scams. Help is Free!
There is never a fee to get assistance of information regarding the Making Home Affordable Program.
Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services, or modification of a delinquent loan.
Beware of anyone who says they can “save your home if you sign or transfer over the deed to your house.
Never make mortgage payments to anyone other than your mortgage company without their approval.
*Forgiveness of debt may have tax consequences. Consult with a tax professional.
For more information on these alternatives, please contact me using this confidential form:
How to Avoid Foreclosure
So much has change in the last several years for homeowners. Due to an uncertain real estate market, troubling national economy, and a spike in unemployment, homeowners are faced with the immense challenge of maintaining their mortgage payments, most living paycheck to paycheck. You may one of many homeowners who have taken a large pay cut, or had unexpected medical bills, or have lost your job entirely.
If you are feeling stuck in a home because you owe more on the mortgage than the home is worth., or your mortgage payment is no longer manageable, you are no doubt feeling an enormous amount of stress.
Facing a possible foreclosure causes emotional stress, but ignoring the problem will compound matters and carries long term consequences. Rest assured, foreclosure almost never needs to happen, especially in today’s environment.
Here are some alternatives to letting your home fall into foreclosure:
Temporary Forbearance Agreement – Under this workout option, the lender agrees to delay foreclosure and/or collection on your mortgage loan to allow you time to reestablish the ability to make your monthly payments. This option depends on your current ability to pay and the nature of your hardship.
Loan Reinstatement – This option requires you to pay the total past-due amount to bring your mortgage loan current. The lender may accept a loan reinstatement until the day of your foreclosure sale. In addition to the past-due monthly mortgage payments, late charges, and other amounts due on your loan. You may be required to pay all outstanding attorney fees and costs of collection to fully reinstate your loan.
Deed-In-Lieu of Foreclosure – The lender offers this option in limited cases, usually when a homeowner is not able to complete a short sale. The lender agrees to accept the title to your house to satisfy some or all of the debt you owe them.* You may not have to list the property for sale. You must be able to convey a clear and marketable title to your property, and vacate it once the title is transferred.
Short Sale – You list your home with a Realtor® of your choice. At the time your house sells, (depending on the offer price, net proceeds, costs and fees of the proposed short sale transaction), the lender may agree to take less than the full amount owed to them to satisfy some or all of your debt.*
This is considered by many one of the best options to avoid foreclosure. Most lenders would rather agree to a sale price that is less than the amount owed, than have another foreclosed property on their books.
Note: Beware of Foreclosure Rescue Scams. Help is Free!
There is never a fee to get assistance of information regarding the Making Home Affordable Program.
Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services, or modification of a delinquent loan.
Beware of anyone who says they can “save your home if you sign or transfer over the deed to your house.
Never make mortgage payments to anyone other than your mortgage company without their approval.
*Forgiveness of debt may have tax consequences. Consult with a tax professional.
For more information on these alternatives, please contact me using this confidential form: