- Have you or will you soon be behind on your mortgage payments?
- Are you unable to refinance?
- Are you concerned about how your current situation is affecting your future credit?
- Do you owe more on your house than what it is worth in today’s market?
- Have you suffered from a financial hardship, life job loss, divorce, disability or maybe just an increase in your monthly mortgage payment?
- Have you tried unsuccessfully to sell your house for an amount that would pay your debt and costs in full?
- Are you worried about how you will continue to meet your financial obligations?
- Do you need help NOW?
We can help! There are several options for homeowners facing foreclosure but the worst thing to do is nothing at all. The first and most important thing you must do is contact your lender. Explain your situation and ask if there is the possibility of working out a solution with them.
Options For Homeowners Facing Foreclosure:
- Reinstatement: If the financial hardship was temporary, a homeowner may be able to request reinstatement from the lender. If the homeowner qualifies, the lender will issue a reinstatement notice stating the amount due to bring the loan current, including past due payments, late fees, legal and processing costs.
- Forebearance: Similiar to reinstatement, a homeowner may qualify for a repayment plan if the financial hardship was temporary, but he or she is unable to bring the loan current in one lump sum. The lender may be willing to spread the repayment over several months.
- Refinance: If there is equity in the property and credit has not been too badly damaged, this can be the best option for many homeowners.
- Mortgage Modification: If a homeowner qualifies, the lender may be willing to adjust the rate or terms of the loan to make the payments affordable.
- Sell the Property: This can be an option if there is enough equity in the property to pay any debts and costs.
- Rent the Property: If the monthly payments are low enough, it is possible that the property could be rented for enough to cover the monthly expenses.
- Deed in Lieu of Foreclosure: Sometimes referred to as a friendly foreclosure, a lender may be willing to accept the deed to a property rather than go through the lengthy and costly foreclosure process. In return the homeowner may avoid some of the potential consequences of foreclosure.
- Bankruptcy: Filing for bankruptcy protection may allow the homeowner to reorganize financially, however, the property if often not fully protected and may ultimately only delay the foreclosure process.
- Servicemembers Civil Relief Act: Under certain circumstances, military personnel may receive temporary relief from making mortgage payments. For more information see SCRA Overview.
- Short Sale: If the market value of the property is less than the amount owned and the homeowner has a financial hardship, working with the lender to accept less than the mortgage balance as payment may be an excellent option.
Don’t wait! Take action today to avoid foreclosure. Contact us today.