Specific Options Homeowners Have:
A foreclosure is the legal process by which a property, pledged as collateral for a debt is sold to satisfy the debt. When the borrower obtains a loan from a lender he agrees to two very important conditions: 1) He promises to make payments according to the terms and conditions of the loan, and 2) He pledges the home as collateral.
If the borrower fails to make a payment he is in default. When the lender accelerates the loan or activates the ‘due on sale’ clause or starts the legal proceedings against the borrower, in order to force the sale of the collateral property to satisfy the loan, this is the process known as foreclosure.
Specific Options Homeowners Have:
Forebearance – Lenders may let a borrower pay less than the full amount of the mortgage or skip a few payments, if there is a reasonable plan to bring the loan current.
Reinstatement – A homeowner may be able to make a payment that covers all of the previous late payments, usually at the end of a forebearance period.
Repayment Plan – Lenders may allow a borrower who has fallen behind to make additional payments each month until the past due amount has been paid.
Loan Modification – Lenders will sometimes change the terms of a loan to help a homeowner avoid foreclosure. Options include the following:
Adding all the missed payments to the loan amount and increasing the monthly payment to cover the larger loan.
Giving the homeowner more years to pay off the loan, lowering the interest rate and/or forgiving part of the loan to lower the monthly payment.
Requiring amounts for monthly taxes and insurance to be included with the monthly mortgage payment to avoid larger bills in addition to the mortgage.
Debt Forgiveness (Deed-in-lieu) – A homeowner could be allowed to sign over the property to the lender in exchange for debt forgiveness, an option that can damage credit but is better than having a credit history of foreclosure.
Short Sale – When the lender agrees to accept less for the property than what is actually owed on the property.
Believe it or not, your lender does not want to foreclose on your home!
A Short Sale is a special transaction that allows you to sell your home – even when your mortgage debt is higher than the value of your home.
We are professional real estate agents who are specially trained on how to negotiate a settlement with your lenders so you can sell your property and get out from under this burden. Best of all, our commissions are paid by the bank so you won’t have any out-of-pocket expense!
A SHORT SALE WILL HELP YOU:
Avoid Foreclosure
Avoid Bankruptcy
Protect Credit Score from a “foreclosure” ding
Be Free of Financial and Emotional Burdens
If you are ready to sell your home and free yourself from this debt
call or e-mail me today for a free consultation.
Time is of the essence!
If your house payments are more than a month behind, your lender has probably already started foreclosure proceedings. As time passes thousands of dollars in penalties and legal fees can be added to the balance you owe. And every single day extra interest is added!
The longer you wait, the harder it is for us to help.
Pete Nemeth |