Options to Foreclosure

• Loan Modification
  A loan modification changes the terms of your loan. If you fell behind because of illness, an accident or a job loss (all temporary occurrences) our Loss Mitigation Consultant can negotiate with the bank on your behalf to have the bank modify your current loan.
  
  The easiest type of loan modification is to roll your delinquent payments or delinquent taxes into the existing loan by increasing your payments if you can qualify for the higher payment. The lender can role the arrearage into a new second mortgage with favorable terms.
  
  A loan modification will immediately give you a fresh start in managing your finances and your account will be brought up to date.
  
  You can and should contact your lender directly to arrange a loan modification, however we recommend you open a case here and work with one of our local experts in your area. Our Loss Mitigation Consultants share their experiences and know if you are getting the best plan offered by your lender.
  
  

• Refinance
  A refinance may be the best and easiest option even if you are late on your current mortgage payments and even if you owe more than your home is worth.
  
  Our congressional leaders are continuously working on ways to cure the problems created by the 2002 to 2006 real estate bubble.
  
  Naturally you will need a steady job and documented income sufficient to qualify for the new loan. Often times the terms may be far better than the loan terms on your current loan because they are backed and insured by the government.
  
  We can not refinance your loan because we are not lenders. Our Realtors are licensed and highly regulated and can not accept and fees from lenders. We do however know the names of all lenders and the contacts within companies who offer these special government insured loans. Open a case here if you would like to refinance using one of the new government insured programs.
  
  

• Short Sale
  A short sale allows you to sell your home to a third party at a market price which is less than the total amount you owe.
  
  The short sale process has historically been the most abused method of selling a home. Please review our “Scam” section to learn how to avoid scams by learning from our previous clients.
  
  Our entire Loss Mitigation Network of former REO brokers was established to facilitate a smooth and legitimate sale if you can no longer afford your home. Each of our Realtors have agreed not to work with investors when listing short sales. They list homes to attract a retail buyer at the highest possible market price.
  
  In a short sale the lender accepts a discount of the current mortgage in order to avoid a very costly foreclosure and eviction process. A short sale will allow you to save your credit and you will not have to move out until the home sells.
  
  The short sale is a complicated process which requires time and lender approval so you should sign in and open a case as soon as possible. Many lenders will stop the foreclosure if your home is listed with one of our Loss Mitigation Consultants.
  
  In a short sale the lender takes a loss which on average is approximately 25% of the principal balance of the original loan. In order to accept a loss the lender must use due diligence in verifying your current credit and financial condition. That requires a short financial statement much the same as a loan application along with tax returns W-2 earnings and a hardship letter stating the exact reason you fell behind on the loan.
  
  If you want to save your credit and are willing to cooperate with the lender, our loss mitigation Realtors make this process simple.
  
  

• Partial Claim
  A partial claim is a one time payment from the FHA Insurance Fund. Currently you must have an FHA loan in order to file for a “Partial Claim”.
  
  Several congressional leaders have proposals and bills before congress to expand the use of the FHA insurance fund to apply to current conventional mortgages. To obtain the latest news on bills before congress affecting conventional mortgages please sign up and open a case today. We will email you information on any new laws, bills and developments.
  
  If you have an FHA loan and can afford your current payments but not your delinquent payments, late charges and legal fees you really need contact us or your lender to obtain all the qualifying requirements.
  
  You may qualify if your delinquent loan is:
  
  1. At least three to 12 months delinquent.
  2. You are able to make your monthly PITI payments.
  3. The hardship which caused the problem has been resolved.
  4. The property is your primary residence.
  5. If you are in a Chapter 13 bankruptcy you may still qualify but we will need to obtain court approval as well as lender approval.
  
  Once approved you will be required to sign an interest free note which will become due when you sell your home.
  
  

• Repayment Plan
  A re-payment plan will let you repay part of the delinquency each month along with your regular monthly installment. This is the simplest way to resolve a delinquent loan.
  
  A repayment plan is the obvious solution if you have realized a short term financial hardship but now are back on your feet and have the income to support a larger than normal mortgage payment. You will be asked to make your normal payments and make some additional payments for the amount you are behind.
  
  To see if you qualify for a repayment plan please sign in and open a new case here. We will help you fill out a simple financial statement and will need to prove your ability to handle both your normal payment plus about 5% of the amount necessary to reinstate your loan.
  
  Lenders are typically very willing to negotiate a repayment plan in order to avoid a costly foreclosure process. Please remember that it takes time and the sooner you open a case the better for both you and your lender.
  
  

• Loan Forbearance
  Lenders will sometimes agree to reduce your mortgage payments or delay the foreclosure process for a short period of time if you know your going to have a temporary loss of income.
  
  When you open a new case, we will work with you and contact your lender together. The lender will require documentation to verify our claim and will likely combine your forbearance with some type of repayment plan.
  
  A sudden temporary increase in living expenses may also qualify for a forbearance plan. The key to obtaining a forbearance is to contact the lender as early in the default process as possible.
  
  

• Deed in Lieu of Foreclosure
  A deed in lieu of foreclosure is an alternate way of transferring the property from you to the lender. A deed in lieu will negatively affect your credit but it is looked upon much more favorably than a foreclosure. You will be able to obtain a new mortgage loan within two years of providing a deed in lieu to your lender.
  
  Usually the lender will ask that the home be listed in the MLS and marketed by a Realtor for a set period of time even if the lender has to approve a short sale.
  
  When you sign in and open a new case we will research your title for free to see if you are eligible for a deed in lieu. Lenders can not accept a deed in lieu if there are junior loans or abstracts of judgments against the property.
  
  

• Investor Sale
  If you have equity in your home but the home is in need of major rehab you should sign in and open a case, so that our local Loss Mitigation Expert can help you get the highest amount for your home. Equity is the difference between the market value of your home and the amount owed on your mortgage.
  
  The larger the equity the easier it is to stop the foreclosure. Many of our loss mitigation Realtors will be able to help you obtain a short term loan, regardless of your credit, so that you will have more time to negotiate with the investors.
  
  If you have a lot of equity, investors will contact you and offer to buy your home by providing you with a little cash. We recommend that you do not sell to any investor without first speaking to one of our local experts.
  
  Please never except the first investors offer. Chances are that more than one investor will contact you and you can compare their offers.
  
  

• Hard Money Second Mortgage
  If you have equity in your home and are willing to sell the home to stop the foreclosure you should sign in and open a new case immediately. Equity is the difference between the market value of your home and the amount owed on your mortgage.
  
  Many of our Loss Mitigation Consultants have sources who can arrange a short term loan, regardless of your credit to help stop the foreclosure and give you time so that you may sell the home for the highest price possible.
  
  Hard money lenders consider the value of the home as collateral and overlook any past credit problems you may have encountered. These loans are made solely on the equity in your home. The are always made at very high interest rates so this option is only a temporary option for short periods of time, usually less than one year.