Options to Avoid Foreclosure

 

  • Short Sale/Pre-Foreclosure Sale- the sale of a home for less than owed where the lender accepts the discounted payoff to fully satisfy the loan.
  • Forbearance- a temporary reduction or suspension of your payments allowing the lender and homeowner to negotiate a solution to bring the account current.
  • Reinstatement- to pay the full delinquent amount at one time and resume making regular monthly payments.
  • Repayment Plan- agreement to resume making regular monthly payments plus a portion of the past due amounts each month until the account is current.
  • Mortgage Loan Modification- to add the delinquent amount to the loan and refinance the debt over a longer period of time allowing for lower monthly payments.
  • Deed in Lieu of Foreclosure- to voluntarily give back the property to the lender.

Frequently Asked Questions

How much do I have to pay to short sell my home? If your lender accepts the short sale, you pay nothing. The lender will pay all commissions, title fees, etc... associated with closing costs.

Why would my lender accept a short sale? Lenders do not want to bear the costs associated with foreclosure proceedings and holding the property until it is sold. They also want the non-performing loans off their books to make more money available for other loans.

What do I need in order to present the short sale offer to my lender? A hardship letter, W-2's or self-employment letter, bank statements, a financial statement, fully executed Purchase and Sale Contract, Buyer's pre-approval letter from their lender.

If I am current on my mortgage, will my lender consider a short sale? Lenders accept short sales on a case-by-case basis and will sometimes approve them even when a borrower is current on mortgage payments.

Can I do a short sale even if I have two loans? Yes, we will work with both lenders in the short sale transaction.

How will the short sale affect my credit? Your credit will most likely be hurt with a short sale due to the late payments encountered while trying to sell the home. However, you will be avoiding foreclosure and the negative aspects it has on your credit. At anytime, we can assist with credit repair to help build your credit score.