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Stop Foreclosure - You have an Option
CAN’T SLEEP - Worried about tomorrow. Will you lose your home to foreclosure or will you be able to save it?
LET'S SEE ALL THE OPTIONS YOU HAVE
In this day in age, you may not be the only insomniac on the block worrying about the home you live in. More than 2.1 million Americans missed their loan payments at least once last year and the alarming rate of properties up for foreclosure hit a record high. The problem would likely get worse with the adjustable rate mortgages adjust to higher rates.
Knowing that you can have options is something you need to consider. For most borrowers, they had at some point a chance to negotiate with the lenders but are not aware of this option.
Let's all understand that FORECLOSURE is a bad thing for both the borrowers and the lenders.
Negotiating at the earliest possible time is critical.
If you're suffering a temporary financial setback, your lender may offer programs that will help you get back on track. They include:
FORBEARANCE -This
is an agreement that lets borrowers make a reduced payment, or none, for a specific period. You might have to make larger payments once the crisis has passed. To qualify, you might need to show that you're expecting a bonus, a tax refund or other income that will let you catch up.
REINSTATEMENT - You agree to pay the full amount of your missed payments by a specific date. Reinstatement is sometimes combined with forbearance.
MODIFICATION - Your
lender agrees to change the terms of the loan to make payments more affordable. Your lender may agree to add missed payments to
your loan balance
or extend the term of your loan, reducing the size of your payments.
FORBEARANCE or Loan Modification is part of a process wherein you need to establish the fact that you are in good faith in trying to pay your loan and that also capable of doing such.
If you are in a home you cannot afford, loan FORBEARANCE is not going to solve the problem. But even if you have to move, you can take steps to avoid foreclosure.
PUT YOUR HOME UP FOR SALE
If you've been in your home for several years and have built up some equity and your local real estate market is strong, your lender may agree to forgo payments until the house is sold. The proceeds from the sale might cover your mortgage and selling costs.
If you have no equity or your local real estate market is depressed, ask your Broker or Real Estate Professional to consider a "SHORT
SALE". In a short sale, the lender agrees to accept the proceeds from the sale of your home, even if they don't cover the amount you owe.
Though a short sale or a title transfer will hurt your credit report, you might still be able to work with your lender to reduce the damage which isn't possible with a foreclosure.
For in-depth details about your options, call us for a free consultation. Our experts are ready to help you.