Homeowners Beware
It is not a secret that foreclosures and short sales are at a 30 year high and will continue to rise. Homeowners have options and here are some:
Loan Modification: By working with your current lender(s) there is a possibility that we could re-negotiate the terms of your loan (rate and terms) for something more affordable. You could keep your property with a better mortgage.
Forbearance: A suspension of payments or temporary payment reduction with the approval of your lender(s) could be negotiated temporarily stopping the foreclosure proceeds.
Special Forbearance: This is where you will make no monthly payment or a reduced monthly payment. Sometimes, the lender will ask you to be put on a repayment plan when the forbearance has been finished to pay back what you missed, while other times they just modify your loan.
Refinance: The Home Affordable Refinance Program (HARP) is a federal program of the United States, set up by the Federal Housing Finance Agency in March 2009, to help underwater and near-underwater homeowners refinance their mortgages. Unlike the Home Affordable Modification Program (HAMP), which assists homeowners who are in danger of foreclosure, this program benefits homeowners whose mortgage payments are current, but who cannot refinance due to dropping home prices in the wake of the U.S. housing market correction. This option may allow you to use the equity that you have established in your home to pay the delinquent amount. Depending on the interest rate of your new loan, your monthly payments might be reduced.
Short refinance: This is a process whereby a lender reduces the principal balance of a homeowner's mortgage in order to permit the homeowner to refinance with a new lender. The reduction in principal is designed to meet the Loan-to-value guidelines of the new lender (which makes refinancing possible).
Deed in lieu: A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from mortgagors who can financially make their mortgage payments but we can try to negotiate for you.
Partial Claim: Under the Partial Claim option, a mortgagee will advance funds on behalf of a mortgagor in an amount necessary to reinstate a delinquent loan (not to exceed the equivalent of 12 months PITI). The mortgagor will execute a promissory note and subordinate mortgage payable to United States Department of Housing and Urban Development (HUD). Currently, these promissory or "Partial Claim" notes assess no interest and are not due and payable until the mortgagor either pays off the first mortgage or no longer owns the property.
Cash-for-keys negotiation: The lender will pay the homeowner or tenant to vacate the home in a timely fashion without destroying the property after foreclosure. The lender does this to avoid incurring the additional expenses involved in evicting such occupants. The process is simple and we can assist and represent you in the process.
Short sale: This is a process whereby the lender(s) accepts a payoff that is less than the principal balance of a homeowner's mortgage, in order to permit the homeowner to sell the home for the actual market value of the home. This specifically applies to homeowners that owe more on their mortgage than the property is worth. Without such a principal reduction the homeowner would not be able to sell the home.
By listing your home for a reduced fee of 1% we have better chances to negotiate your new terms with your current lender(s). If the only option is to sell the property we can do that for you in a seamless manner and you will sell your home with dignity avoiding foreclosure or eviction proceeds.
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