Reinstatement
You pay the total amount past due including late fees and any Attorney Fees. This is the total amount which will bring your account current. You may be looking at having to bring a large amount of cash to cover late fees, back payments, past due fees, and legal expenses. You need to do this by a specific date, in order to be reinstated.
Refinance
If you have sufficient equity in the home and household income, you can pay off the existing loan by refinancing the property. This may give you better loan terms that you currently have at a lower payment.
Deed in Lieu
This is a solution if you have some equity in the house. You give away the home to the lender because you can’t afford to pay anymore. The lender then sells the property to retrieve all or part of the loan you owe. There are other considerations with this option, which we will need to discuss.
Obama’s Making Home Affordable Loan Modification
This program gives up to 4 to 5 Million Homeowners with loans guaranteed by Fannie Mae or Freddie Mac, an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 Billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures.
Sell Your Property
You can sell your home and cover all the costs associated with the sale. You may need to bring money to the closing table to cover any shortfalls.
Short Sale
If you owe more than your home is worth, you can look at getting a discounted pay off with your mortgage company(s). We can negotiate on your behalf with your lender(s) to get an approved short sale. The lender almost always pays all the costs including attorney, commissions and other customary fees for the sale. Short Sales benefit the lender and benefit the homeowner.
Mortgage Forbearance
In simplest terms this allows you to temporarily stop making your mortgage payments. This is generally used for short times of unemployment or poor health. Once the agreed time has passed you will make your full payments again.
It is common when you are in a sticky situation like this to be embarrassed and ashamed. You do not want to air this dirty laundry to people. You can choose to do nothing, 40% of the homeowners in foreclosed homes chose to never make an attempt to stop the process. This is a huge mistake, the lender does not want to foreclose, and this means more work and expense for the bank. It is also devastating to your credit. Let us help you choose an option which will better benefit your family.
