Options To Stop Foreclosure
Save your home from foreclosure with loss mitigation programs
Loss mitigation programs have been established by the mortgage industry and the federal government, as an initiative to avoid foreclosure. Through these programs, homeowners who are in default and facing foreclosure will find other options that may benefit both homeowner and lender. These different programs available are all subject to the lender’s policies, laws and the homeowners financials. With our industry knowledge and expertise, we have established our place in this industry and are able to offer you the most comprehensive solutions through the most current and innovative loss mitigation programs available by lenders. Below are some options that are available.
If you have incurred a permanent or long term hardship that has affected your financial situation, we may be able to help you. We will first work with you to analyze your financial’s and then gather all the necessary documentation to be provided to your lender. We can take all the appropriate measures to notify your lender of your current situation and work with them to modify your loan. In a modification we may be able to bring you current. This will include all or either of the following: lowering your interest rate, if adjustable lowered to a reasonable rate; extending the amortization; adding late fees and other charges to the principal balance; all of which can result in you becoming current and lowering your monthly payment.
Rate modifications are available for homeowners who have adjustable rate mortgages, or high rate mortgages, and are past due because of an increase in payment along with a financial hardship. If you are a homeowner facing this problem, call to speak to one of our representatives today so we will assess your situation and help you modify your rate.
DEED-IN-LIEU OF FORECLOSURE
If you have incurred a long term financial hardship and your house has been on the market (at fair market value) for at least 90 days, you may be eligible for a deed-in lieu of foreclosure. To be considered for this option, you must complete a financial package and provide a copy of your recent active listing agreement. Also, there cannot be any additional claims or liens (other the mortgage) against the property. If you are approved for a deed-in-lieu, you will be giving up all rights to the property and the property will be conveyed to your investor. In exchange for the deed-in-lieu, the lender may waiver all deficiency judgment rights. You may be asked to participate in a Short Payoff program before a deed-in-lieu of foreclosure is accepted.
A Forbearance Agreement is just a fancy word for a repayment plan. We negotiate directly with your lender to reduce the amount needed to reinstate your loan. The balance is added to your payments over the next six months to three years. Once we’ve negotiated and come to an agreement with your best possible repayment terms, the foreclosure is cancelled.
(Short Sale) (Pre-foreclosure Sale) (Compromise Of Sale)
If you have suffered a long term financial hardship and are unable to maintain your loan or if you need to sell the property to avoid a default loss on the property, it is possible that the lender may be able to accommodate you with a short payoff. A qualified buyer is required. If this is an option you wish to pursue, you must inform the loss mitigation specialist assisting you immediately. There may be tax ramifications associated with any short payoff or foreclosure; therefore, we recommend you contact your Tax Advisor for details. Some states permit lenders to seek a deficiency judgment for the amount the payoff was discounted. See your state’s foreclosure law for more information. Check with an attorney for advice on your personal situation.