Behind on Your Mortgage
The most common options for a homeowner falling behind on their mortgage are:
- Loan Modification - A Loan Modification is a negotiation between a lender and a borrower whereas the loan terms are restructured without refinancing. The rate and terms of your loan are restructured to fit your current financial situation. If we are able to qualif'y you, the lender may allow you to add the delinquent amount owed to the current principal balance owed. They may even lower your rate to help lower the monthly payments to help you avoid default and get your credit status restored with them.
- Forbearance Agreement- With the right situation, we can help you work out a repayment plan with your lender to allow you to cure your delinquent amount over a period of time and reinstating your home loan with a manageable monthly payment.
- Short Sale - Sometimes it is in the best interest of the homeowner to sell their home, whether it is a change in income or lifestyle (newborns, marriages, divorces, etc.) they can no longer afford their mortgage payment. It is never easy just to decide to sell under these types of circumstances, and with the current real estate market situation if you have little or no equity you may end up with a loss on the actual sale of your home. When you owe more than your home is worth a short-sale occurs. Our company will assist you, provided the lender agrees, in the sale of your home under the right circumstances. But the lender would agree to any net proceeds as full payoff. An appraisal is required for a short-sale.
- Deed in Lieu of Foreclosure- If you can no longer afford your mortgage payment and can not qualify for a loan modification, and foreclosure or short-sale are not an option for you, then you may voluntarily give your property rights back to the investor. Normally your lender will demand a walk-through inspection of your property before they will accept a Deed in Lieu of Foreclosure. Additionally, your credit history will still be impacted negatively however in most cases this action is viewed more positively by future creditors when compared to a foreclosure or a bankruptcy filing.
- Reinstatement Plan - Where your lender will reinstate the original terms of your loan once you are caught up.
- Repayment Plan - Where your lender will tack on an extra amount onto each payment for a set period of time.
- Loan Refinance- Refinancing may be an option if you have the equity and credit required.
- Pre-Foreclosure Sale - You agree to sell your property before foreclosure takes place. (requires equity)
Call or e-mail us today for a free consultation.