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Repayment Plan | Best Loan Modification:
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Some of your different options are: reinstatement, a workout program which includes Forbearance, Loan Modification (also called restructuring), and partial claim, short sale, refinance, deed-in-lieu of foreclosure, and foreclosure. A Reinstatement is an option if you are behind on your payment. This option states that you pay the lender back all of the payments to bring your mortgage current.
This option is rarely achievable and not always beneficial because of addition late fees and attorney fees charged by your lender. There are a couple different types of Workout Programs. We talk directly to your lender to help bring your loan current. The workout option of Forbearance is the arrangement of a payment plan. This can postpone your principal payments for a certain period of time while you pay only interest. This option is mostly used during a temporary loss of employment or unexpected tragedy. The next work out plan that may be available to you is a Loan Modification or Restructuring. This is when the terms of your loan are changed, either the loan amount or interest rate, to help you meet your mortgage obligation based on your financial capabilities. Lastly, a Partial Claim work out program is when the repayment amount is applied to the balance of your loan and you continue normal payments. These are the options you have with your current mortgage.
However, there are other ways to handle the inability to make your mortgage payment. Again, these options might not necessarily be the best for your particular situation. When most people think of change their loan terms, they Refinance. We have established affiliations with very well-known lenders. It is best to try to refinance before you reach the point of facing foreclosure. Some lenders will refinance a property in foreclosure if there is enough equity in the house.
If you can not refinance or modify your loan, your best option may be to Sell Your Home. Selling your home before the Foreclosure Sale Date is a very good option. It may be the case that you can not sell your home for above the equal to the balance due on your loan. In this scenario, a short sale can be negotiated with your lender. The Lender may take less than what you owe on the loan. In this way, you will avoid foreclosure and the lender will avert the costs associated with foreclosure.
Another option that isn't very frequent is called Deed-in-lieu of Foreclosure. In this situation, it may be that you cannot find an interested buyer to sell your home for a short sale and are facing a foreclosure. We can negotiate for you to sign your deed back to the Lender without facing the proceedings of a foreclosure. This mostly occurs when the market value of the home is higher than the lien against the home. The settlement will be at least equal to the fair market value of the home.
Finally, if no other option above works, you may face Foreclosure. You may decide to allow your home to proceed into mortgage foreclosure. This is absolutely NOT the best option as it will severely damage your credit and ability to obtain a home loan in the future. Not only will you lose your home, but also all of your equity. Also, if there is no equity, you may be responsible to your lender for the shortage. We do not recommend this option, and provide you with useful tips to avoid foreclosure.
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