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 Foreclosure is a scary word that means the lender is going to repossess your property because you defaulted on your mortgage payments. While no one plans to have a home foreclosed upon, there are life circumstances such as unemployment, severe medical conditions and divorce that sometimes leaves no room for making the mortgage payment. Knowing the process and your options will help take the fear out of foreclosure. The first thing you need to remember is to contact us if you feel you’re losing control of your mortgage and the payments. If we know what’s going on in the beginning, we’re able to help you much more then when you’ve fallen completely behind. Once the lender knows what’s going on, there may be several options. Special Forbearance This is when a lender works out a plan to waive your payments for a period of time or readjust your payment schedule. Mortgage Modification You may be able to refinance the debt or extend the terms of the mortgage so your payments will be smaller and more affordable. |
Pre-Foreclosure Sale If you sell the property before foreclosure, you can avoid having a foreclosure on your credit report. There are conditions to doing this, however; the appraised value must be at leased 70% of the amount you owe; the sale price must be at least 95% of the appraised value; you must be at least two months behind in paying your mortgage; and you must sell in three to five months. Deed In Lieu Of Foreclosure Another way to save face is the deed in lieu of foreclosure benefit. You essentially make a trade with the mortgage company. You give back your property to the lender and your credit remains intact. This option works best if you cannot benefit from other options, if you cannot sell your house, and if you don’t have any other mortgages in default. Bankruptcy As a last resort, discuss with your attorney the possibility of recasting of the debt to stop the foreclosure, or declaring a Chapter 13 bankruptcy. As always we’re here to help you in the good times and the bad. So please don’t hesitate to call us. |
