Here are some of the options:
1. Special Forbearance. Your lender may be able to arrange a repayment plan based on your financial situation. Your lender may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently lost your job or your source of income or if you had an unexpected increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.
2. Mortgage Modification. You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay).
3. Partial Claim. Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current. You may qualify if: 1)your loan is at least 4 months delinquent but no more than 12 months delinquent; 2) your mortgage is not in foreclosure; and 3) you are able to begin making full mortgage payments. When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must execute a promissory note, and a Lien will be placed on your property until the promissory note is paid in full. The promissory note is interest-free and will be due if you sell or leave your property, or when your mortgage matures.
4. Pre-foreclosure sale (also known as a "Short Sale"). This is the fastest-growing foreclosure alternative. Many banks will allow a short sale, in which the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, short sales generally take less time than foreclosures, so the banks don't have to carry the properties on their books as liabilities. This is an attractive option for you, the homeowner, because the impact on your credit is far less than in a foreclosure. A short sale can stay on the credit report for only two years, as opposed to seven years for a foreclosure.
5. Deed-in-lieu of foreclosure. As a last resort, you may be able to voluntarily “give back” your property to the lender. This won’t save your house, but it will help your chances of getting another mortgage loan in the future. You can qualify if: 1)you are in default and don’t qualify for any of the other options; 2) your attempts at selling the house before foreclosure were unsuccessful; and 3) you don’t have another FHA mortgage in default.
A HUD-approved housing counseling agency, such as HOPENOW (http://www.hopenow.com/)can help you determine which, if any, of these options may meet your needs. You should also discuss the situation with your lender.
If you determine that your best course of action is to pursue a short sale with your lender, make sure you choose an experienced agent with specialized short sale training. Short sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained real estate agent who knows all the steps required to successfully complete a short sale. I have experience and have received specialized training necessary to understand the intricacies of these transactions.
Call me today and let's start working through your options.
1. Special Forbearance. Your lender may be able to arrange a repayment plan based on your financial situation. Your lender may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently lost your job or your source of income or if you had an unexpected increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.
2. Mortgage Modification. You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay).
3. Partial Claim. Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current. You may qualify if: 1)your loan is at least 4 months delinquent but no more than 12 months delinquent; 2) your mortgage is not in foreclosure; and 3) you are able to begin making full mortgage payments. When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must execute a promissory note, and a Lien will be placed on your property until the promissory note is paid in full. The promissory note is interest-free and will be due if you sell or leave your property, or when your mortgage matures.
4. Pre-foreclosure sale (also known as a "Short Sale"). This is the fastest-growing foreclosure alternative. Many banks will allow a short sale, in which the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, short sales generally take less time than foreclosures, so the banks don't have to carry the properties on their books as liabilities. This is an attractive option for you, the homeowner, because the impact on your credit is far less than in a foreclosure. A short sale can stay on the credit report for only two years, as opposed to seven years for a foreclosure.
5. Deed-in-lieu of foreclosure. As a last resort, you may be able to voluntarily “give back” your property to the lender. This won’t save your house, but it will help your chances of getting another mortgage loan in the future. You can qualify if: 1)you are in default and don’t qualify for any of the other options; 2) your attempts at selling the house before foreclosure were unsuccessful; and 3) you don’t have another FHA mortgage in default.
A HUD-approved housing counseling agency, such as HOPENOW (http://www.hopenow.com/)can help you determine which, if any, of these options may meet your needs. You should also discuss the situation with your lender.
If you determine that your best course of action is to pursue a short sale with your lender, make sure you choose an experienced agent with specialized short sale training. Short sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained real estate agent who knows all the steps required to successfully complete a short sale. I have experience and have received specialized training necessary to understand the intricacies of these transactions.
Call me today and let's start working through your options.
Tough times fall on good people. If you're in default on your home mortgage and facing foreclosure, it's important for you to know that you've got alternatives.
No comments:
Post a Comment