If you are a home owner who is finding it more and more difficult to pay their monthly mortgage you may have come to the realization that foreclosure is going to happen sometime in the near future. Maybe you are even one of those homeowners who have already missed one or more mortgage payments. Either way, you may not realize it, but now is the time for you to spring into action to protect your and your family’s future.
Missing a mortgage payment or two does not have to mean that you are going to be kicked out of your home and that you will be out on the streets before you know it. You have options!
Depending on your specific set of circumstances, there could be a wide variety of options available to you to help you deal with your situation.
Contrary to popular belief, lenders don’t want to take your home. Banks and mortgage companies are in the business to loan money, they are not in the business to own and manage homes. So what should you do? Get the lender on the phone, ask them what options you have and then evaluate those options. You will most likely need the expertise of a CDPE (Certified Distressed Property Expert) agent to help you out. Your attorney and tax preparer can also give you good advice as to how the different options will affect your and your family’s future.
Here are some of the options that the lender might suggest:
Reinstatement
Homeowner requests the total amount owed to bring mortgage payments current and pays it.
Forbearance or Re-payment plan
Homeowner negotiates with the mortgage company to allow them to repay back payments over a period of time.
Sell the Property
Homeowner with sufficient equity lists their property with a qualified agent that understands the foreclosure process in their area.
Rent the Property
Homeowner with a mortgage payment low enough that market rent will allow it to be paid converts their property to a rental.
Mortgage / Loan Modification
Homeowner negotiates with lender to modify the interest on the loan, the principal balance, or any combination of these, resulting in a lower payment.
Home Affordable Foreclosure Alternatives Program (HAFA)
Homeowner qualifies for HAFA and is offered pre-approved short sale terms and cash incentives for relocation assistance.
Short Refi
Homeowner negotiates with lender to refinance a mortgage for less than what is owed on the property.
Deed-in-Lieu of Foreclosure
Homeowner returns the property to the lender rather than go through the foreclosure process.
Deed for Lease
Homeowner returns the property that is FHA-insured back to the lender and leases the property for a twelve month period.
Refinance
Homeowner with significant equity in his/her property and good credit standing refinances their mortgage.
Bankruptcy
Homeowner with significant non-mortgage debt who is unable to pay these debts or his/her mortgage payment files for bankruptcy which liquidates assets and/or reorganizes debt to pay back creditors.
Service Members Civil Relief Act (SCRA 303)
A member of the military who is experiencing financial distress due to deployment (and can prove entered into debt before employment) qualifies for temporary relief under this act.
Homeowners Assistance Program
A member of the military or federal employee qualifies for this program which has a variety of assistance programs including private sales, government purchase, and/or foreclosure assistance.
Short Sale
Homeowner has a financial hardship and qualifies for a sales
As a CDPE, I am uniquely qualified to help you work through this maze and help clarify the options that are available to you. Regardless of the option that you choose, you need to act quickly!
Get the lender on the phone, see what options are available to you. If you qualify for a short sale, then don’t wait another day. Contact me and let’s get started towards getting back on track for a better future.
For more information on each of these options please visit my website at www.IndyShortSaleQueen.com and click on Foreclosure Solutions.
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