Avoid Foreclosure

 

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Know Your Options

Retention Options

  • Forbearance 

    • This is an agreement that is made with the bank* to accept a portion of the contracted mortgage payment for a set period of time, usually lasting 3 to 6 month.  This is a temporary solution.  At the end of the forbearance plan, the mortgage will either have to be brought current and/or a modification package will need to be submitted for consideration of a long term solution.  Forbearance can be ideal for periods of unemployment or short term hardships.
  • Reinstatement

    • This is when you have missed making one or more payments but you are willing and able to make a lump sum payment that brings your mortgage current.  The terms of your mortgage remain the same and you are considered current with your bank*.  This option does not require documentation or bank* approval. 
  • Repayment Plan

    • This is when you have missed one or more payments on your mortgage but you are now able to make both the contacted payment and a portion of the amount that you are behind each month until the mortgage is brought current.  Many times repayment plans are only available if you are less the 6 to 12 months behind.  You must qualify for this option by submitting a modification package and document that you are able to make the additional payment each month. 
  • Modification

    • This is when you are behind on your mortgage payment(s) or have proven imminent default (death, disability or divorce) and have entered into an agreement with your bank* that changes the terms of your loan.  Possible term changes may include but not be limited to; lowering the interest, extending the length of the loan, or take other steps to reduce your payment amount.  There are multiple types of loan modification that are dependent on investor and program guidelines.  You must qualify for this option by submitting a modification package and completing a trial plan in most cases.  

Non-Retention Options

  • Sell Your Home

    • This is when you are behind on your mortgage payment(s), the value of the home is more than the remaining loan balance and the property is listed for sale.  The property must sell prior to foreclosure.  The loan balance will be paid at closing and the seller will retain any monies remaining after the balance is paid.
  • Short Sale 

    • This is when you experience a hardship that makes it no longer possible to afford the mortgage and you owe more on the balance of the loan than the property is worth.  You must seek bank* approval prior to listing the property for short sale.  A short sale package (including but not limited to an offer) must also be approved by the bank* in order for the property to be sold.  Once the short sale process has been completed you will no longer be responsible for the mortgage.  The short sale process can be lengthy and requires a realtor experienced in short sales.  There cannot be any liens or title defects on the property.
  • Deed-in-Lieu

    • This is when you experience a hardship that makes it no longer possible to afford the mortgage and you owe more on the balance of the loan than the property is worth.  Essentially, you are giving the home back to the bank* with the promise of not damaging the property prior to moving.  Property inspections will be conducted by a representative from the bank* prior to the Deed-in-Lieu being completed.  In many cases, you are required to list the property for short sale for at least 90 days prior to requesting a Deed-in-Lieu (this is not the case for loans that are owned by Fannie Mae).  Banks are not always willing to approve Deed-in-Lieu if the Notice of Trustee Sale has been issued. There cannot be any liens or title defects on the property.
  • Deed-for-Lease

    • This is when you experience a hardship that makes it no longer possible to afford the mortgage and you owe more on the balance of the loan than the property is worth.  Essentially, you are giving the home back to the bank* and requesting to rent the home from the bank* for an agreed upon length of time.  This can be anywhere from one month to a year, rental payment will be dependent on length of time and rental market rates in the property area.  Property inspections will be conducted by a representative from the bank* prior to the Deed-for-Lease being executed.  In many cases, you are required to list the property for short sale for at least 90 days prior to requesting a Deed-in-Lieu (this is not the case for loans that are owned by Fannie Mae).  There cannot be any liens or title defects on the property.
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Testimonials

Thank you for taking the time to talk to me and put my heart at rest! I look forward to working with you to stay in our home.  I have an appointment with a housing counselor your referred us to and I will give you an update once that occurs.  Again, it meant so very much to me that you took the time to give me hope.
A. F.
There are no words to say how much you did for us and how much you helped us, you basically saved us.
B. A.
I want to say a huge thank you.  It feels a million times better knowing where we will be living, that we don't have to move, and I can actually afford to live here.  My life is no longer on hold, and we have been able to make plans for the first time in ages. There is no more black cloud of uncertainty hanging over my head always, waiting for the bank to dictate so much of my life. Thank you, thank you, thank you!
C. K.