Avoiding Foreclosure

A Pending Foreclosure is Stressful and Confusing.
We can help owners through this difficult time.

We Encourage Owners to Contact their Lender
See if a possible loan workout option is available.

To help you understand Listed below are some short term options and their definitions

Forbearance

A lender may allow a borrower to reduce or suspend payments for a short period of time, after which another option must be agreed on to bring the loan current within a specified time period.  A Forbearance option is often combined with a reinstatement especially if the burrowers know they’ll have enough money to bring the account current.  Ex. A tax refund

Reinstatement

Lenders may be willing to discuss accepting the total amount owed to them in a lump sum by a specific date.

Repayment Plan

A borrower might be able to make a make an agreement with the lender to resume making regular monthly payments, plus an additional portion of the past due payments each month, until the loan is current.

Some long term Option may include:

Mortgage Modification

If the borrower can make at least some of the payment on the loan but does not have enough money to bring the account current, the lender might be willing to permanently change one or more terms of the original loan to make the payments more affordable. Ex. Adding the missed payments to the loan balance.  Or changing the interest rate, including making an adjustable rate loan into a fixed-rate loan  or extending the number of years to repay the loan.

Claim Advance

If your mortgage is insured you may qualify for an interest-free loan from your mortgage guarantor to bring your account current.

If Keeping Your Home Is Not an Option, Alternatives to Foreclosure Include

Sale

The The lender will usually agree to a specific amount of time to find a purchaser and pay off the total amount owed. The burrower will be expected to obtain the services of a real estate professional to market the property.

Short sale

If the property’s sales value isn’t enough to pay the loan in full, the lender might accept less than the full amount owed to cut its losses. This option can also include a period of time to allow the burrower’s real estate professional to find a qualified buyer.

Assumption

The lender might agree to permit a qualified buyer to assume the mortgage payments, even if the loan documents state that its non assumable.

Deed in Lieu

The lender might agree to allow the burrower to voluntarily “give back” the property and forgive the debt. Although this option sounds like easiest way out, The borrower usually must attempt to sell the home for 90 days before the lender will consider this option. Also this option may not be available if the borrower has other liens, such as judgments by other creditors, a second mortgage, or IRS or state tax liens.

These are some of your options
and not all these options are available with every lender.

We encourage owners to contact their lender
to see if a loan workout option is available.

If you have any questions or if we can be of any service to you
do not hesitate to contact us.

Now If You Decide to Sell Your Property,

We are Ready to Get You FAST CASH for it.

Source: U.S. Department of Housing and Urban Development (www.hud.gov)