Many times, through no fault of their own, home owners are put in the position that they may see the American Dream turn into a nightmare. Everything from rising costs and interest rates, to problems at work, have taken their toll on home owners. People that never did anything wrong, who are victims themselves, have been made to feel like the villains with no hope in sight for them.
Are you behind on your mortgage payments?
Do you owe more on the mortgage, than what your home is worth today?
Are you being threatened with eviction from your home?
Has the court served you with foreclosure papers?
Are you worried about having a foreclosure or bankruptcy on your credit report for the next 7-10 years?
According to a consumer poll, seven in every ten homes is in financial distress. While nine out of ten properties has seen its value plummet to the bargain basement level, with little relieve if any. With all the large companies that have received bailouts over the past several months, why isn’t the average home owner getting a bailout? The economic stimulus payment of 2008 was a joke… Maybe it could pay for a week’s worth of groceries, but that’s about it—if you were lucky.
Programs also to help home owners with loan modifications and refi’s have been next to useless as not all lenders have adopted them. In fact under the recent HOPE program, the government will admit that only a handful of loans have been saved. Is yours in that group?
Knowing Your Options Is The First Step!
If you are having difficulty with your mortgage payments, or facing foreclosure, you're probably feeling overwhelmed and frustrated. You are not alone. Many homeowners are facing the same situation. They simply do not know what to do, where to turn to for help, and virtually feel helpless to take any meaningful action. That's where I come in.
I recommend you familiarize yourself with the three most common survival options.
· Option 1: Stay In Your Home (Fight for what is yours)
You have 5 options here to review when considering how to stay in your home.
1. Refinance Option: You may be able to secure a new loan with more favorable terms, rates, and payments. The new loan will replace your existing, providing much needed financial relief.
Here are your benefits!
· More affordable monthly payment.
· No negative impact on your credit history.
· You stay in your home and avoid a short sale or foreclosure.
· You may also qualify for the US government's program called HARP, (Home Affordable Refinance Program), designed to help homeowners who cannot obtain refinancing from traditional lending institutions.
2. Repayment Plan: If you are behind on your payments, this agreement between you and your mortgage company allows you to pay past due amounts over a specified period of time, by adding it to your existing mortgage payment, to bring your mortgage up-to-date.
Here are your benefits!
· Solves your current payment problems.
· Back debt is brought current.
· Your credit score is damaged less than a foreclosure. (If reported by your mortgage company.)
· You stay in your home and avoid a short sale or foreclosure.
3. Forbearance: An agreement whereby your mortgage company agrees to reduce, or suspend, your mortgage payment for a specific time period.
Here are your benefits!
· You have time to resolve your financial issues.
· Your credit score is damaged less than a foreclosure. (If reported by your mortgage company.)
· You stay in your home and avoid a short sale or foreclosure.
4. Modification: An agreement whereby your mortgage company agrees to change the original terms of your mortgage. You can request reduction in payment, term of loan, and interest rate. Each modification is unique to the property and owner.
Here are your benefits!
· Your overall mortgage commitment is reduced to a more affordable level.
· Your credit score is damaged less than a foreclosure. (If reported by your mortgage company.)
· You stay in your home and avoid a short sale or foreclosure.
Please Note: You may also qualify for the government's 'Home Affordable Modification Program'
5. Deed-For-Lease™: This option allows you to transfer ownership of your home to your mortgage company, known as a Deed-in-Lieu of Foreclosure. You are then released from your mortgage. You can then rent your home from your mortgage company for an agreed period of time.
Here are your benefits!
· You can rent at current market rates for 1 year. (Term extension is negotiable)
· You do not need to pay a security deposit to stay in your home under the new lease.
· You have time to begin repairing your credit history.
· You save on the cost of relocation.
· You may qualify for another home loan in as little as 2 years as compared to 7 if you went through foreclosure.
Option 2: Short Sale (In the event that you cannot stay in your home)
First, what is a Short Sale? It is the sale of a home for less than the amount outstanding, currently remaining, on your mortgage.
A short sale is also called a pre-foreclosure sale. Your mortgage company must agree to a short sale. If it does you can sell your home and pay off all, or a portion, of your outstanding balance with the sale proceeds.
Here are your benefits!
· You can eliminate, or reduce, outstanding mortgage debt.
· You will repair your credit sooner as compared to a foreclosure.
· You may be able to qualify for another mortgage sooner, around 2 years, as compared to 7 if you went through the foreclosure process. (Fannie Mae as an example)
· You may qualify for relocation assistance.
Option 3: Foreclosure (In the event that a short sale doesn’t work for you)
What is
Foreclosure?
=============
When homeowners fall behind on mortgage payments, a foreclosure may occur. A
foreclosure is a process in which a financial institution repossesses or sells a
property because of a loan default. Mortgage lenders usually consider a mortgage
to be in default when payments haven't been made in three months.
There are basically two types of foreclosures: judicial foreclosure and
non-judicial foreclosure. About a third of the states in the nation use judicial
foreclosure. This type of foreclosure involves issuing a lawsuit against the
homeowner. If the homeowner does not respond to the lawsuit, the mortgage lender
wins the case and the home is put up for sale in an auction. In other words, a
homeowner will lose his home if it is foreclosed on by the lender.
Proceeds
from the sale of the house would go towards paying off the default amount of the
former homeowner's mortgage loan. However, if the proceeds of the sale are not
enough to cover the owed amount, a deficiency judgment is issued to the former
homeowner. For example, if a home sells for $80,000 and the balance on the
mortgage loan was $100,000, the former homeowner is still liable for the $20,000
difference. Deficiency judgments, as well as the foreclosure itself, could do
severe damage to the homeowner's credit.
How do you
stop foreclosure?
===================
You have 2 options to review when considering a foreclosure.
1. Deed-in-Lieu Option (DIL)
Before you decide to choose the foreclosure option you may first want to consider a 'Deed-in-Lieu' foreclosure as it offers a better solution than a direct foreclosure. You will voluntarily transfer the ownership of your home to the owner of your mortgage and the mortgage holder may release you from your mortgage obligations.
Here are your benefits!
· You will eliminate, or reduce, mortgage obligations.
· You avoid the negative impact of a foreclosure on your credit.
· You may qualify for relocation assistance.
· Your credit score is damaged less than a foreclosure. (If reported by your mortgage company.)
· You may qualify for another home loan in as little as 2 years as compared to 7 if you went through foreclosure. (Fannie Mae for example)
· If your mortgage is with Fannie Mae you may qualify for to remain in your home under the lease option called 'Deed-For-Lease"™ .
2. Foreclosure Option
You will only pursue a foreclosure if all other options have not provided a solution to your present circumstances. Please understand your mortgage company does not want to foreclosure on your home. They recognize the process is expensive for them and are open to option discussions.
Your mortgage company obtains ownership of your home through a legal process called foreclosure. A foreclosure happens when a homeowner has stopped making payments on the mortgage and has violated one or more terms of the mortgage.
Our Recommendation
First, we are not attorneys and cannot give you legal advice. However as we are real estate and mortgage licensed professionals, as well as financial consultants, we look at all possibilities. Our company specializes in resolutions of mortgage delinquencies or home foreclosure claims on behalf of you, the homeowner. We perform a detailed financial analysis and work with you to determine your best alternatives. We review your lenders loss mitigation policies and your state's foreclosure law to make sure that we give you the best service within the context of your situation.
By working with you and your lender we can tailor a resolution to meet your specific criteria and financial circumstance. We do all of this quickly and effectively because we have been doing this since 1988 and have thousands of satisfied customers.
How long
do I have to act?
=================
Time is of the essence when you are behind on house payments. Time is definitely
not your friend in this situation. Each day that passes makes it that much
harder to get an agreement worked out with your lender that you can live with.
The home foreclosure process can take anywhere from a few weeks to many months,
depending on your state law and the method of foreclosure your lender chooses to
use. We have encountered many homeowners who did not even know that they had
already lost their house!
What’s the
bottom line?
=================
WE WORK FOR YOU, NOT YOUR LENDER. With practical experience since 1988 we have been working together with home owners as a team to help them stop the foreclosure process and save their home. We specialize in out-of-court resolutions of government and non-government mortgage delinquencies and foreclosure claims against homeowners. These can be FHA, Rural Administration, VA, Freddie Mac, Fannie Mae, or conventional loans, which have become delinquent.
Our services help homeowners who seek help to avoid foreclosure. Your home is likely to be your biggest and most important investment. It is more than brick and lumber. It's a place where your family lives and dreams. It's a place where memories are held, loved and cherished. We keep a clear view of that as we work for you and your home.
We promise to give you our very best care and attention.
Contact us today for your FREE, NO OBLIGATION CONSULTATION. If you qualify we will help you STOP YOUR FORECLOSURE AND SAVE YOUR HOME.
You must act now, time is critical.
Oath of Confidentiality: We hereby promise to protect all information as 100% confidential. Your name or information will not be shared, stored, or sold beyond the scope of providing help with your specific problem.
Get your FREE, No Obligation Consultation Today!! Call or email today!
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