Save Your Home from Foreclosure

During a housing market and financial crisis, there are always a certain percentage of homeowners who are under tremendous stress and fall behind on their mortgage payment.

Did you know that despite the odds, there are options that may save your home from foreclosure.

One in ten households are behind at least one mortgage payment, and it is estimated that more than two million homes have gone to foreclosure since the downturn began. Seven of these ten will, more than likely, proceed to foreclosure without assistance or help from a real estate professional or their mortgage representative.

Some options available are:

Reinstatement – homeowner is required to pay all missed payments, late fees, and any other fees incurred up to the date that the loan is reinstated.

Forbearance / Repayment Plan – the lender allows the homeowner to pay the missed amount over a period of time, or places the missed payments and fees at the end of the loan.

Mortgage Modification – the lender allows the interest rate on the loan to be lowered to lower the monthly payments.

Deed-in-lieu of Foreclosure – sometimes referred to as a friendly foreclosure, the homeowner essentially gives the deed back to the lender.

Bankruptcy – in most cases, bankruptcy can stop the foreclosure and give the homeowner time to reorganize their debt in an effort to keep their property.

SCRA – Service members Civil Relief Act – provides certain protections to military personnel who are in foreclosure in specific conditions.

Sell –the homeowner can sell the property to prevent foreclosure, whether or not there is equity in the home. If the homeowner owes more than the current market value of the home, the lender may allow the homeowner to sell through a ‘Short Sale’.

Understanding your options is the first step to avoiding foreclosure. Contact your lender and ask for all the options available to you to avoid foreclosure. They are also your best resource in avoiding a mortgage scam. Should selling your home be the best option for you, give me a call to help you make the process as easy as possible.