If you have fallen behind on your mortgage, or fear you are about to, there are options that may be available to you to resolve the problem with
your lender and avoid the bigger problem that is foreclosure.
Whatever you do, don’t feel that you are facing a situation that requires that you act before you have a chance to review what your options are.
Don’t do anything until you understand your options.
For a list of steps you may want to consider to assist you in selecting the right option for you, click here
Now, let’s look at some of your options:
Do a Short Sale
If it turns out you owe more than your home is worth, and you see selling the home as your best option, a Short Sale is something you will want to consider. In a Short Sale, you will be asking your lender to accept net sales proceeds, after all costs of sale are deducted, including commission, as a settlement to “pay” the mortgage.
Your chances of getting a Short Sale sold, approved, and closed goes way up if you have a real estate agent with extensive experience working on
Short Sales. You may also want to consult legal, tax and other advisors to review your particular financial situation and the options (and consequences
of those options) availalbe to you.
Refinance –
You could refinance the property and pay off existing loans.
We have loan sources for these types of loans, but they can be very expensive. Look very closely at all the terms of the loan if you decide to try to refinance.
Loan Modification –
For those that want to try to keep the property, a loan modification might make it possible. In a loan modification the lender typically adjusts the payments on the loan to make the payments manageable for the homeowner.
To get a more in-depth description of the loan modification process, click here
Forbearance Agreement –
Used most frequently when a homeowner has experienced a temporary financial setback and expects to be back on solid financial footing and able to resume making regular payments.
Most times, in a forbearance agreement the basic terms of the mortgage remain the same. The key to a forbearance is the lenders willingness to put together a specific plan in the agreement that allows the homeowner time to catch up on delinquent mortgage payments.
Short Refinance –
Sometimes called a Short-Refi, or Short Pay, a short refinance involves the existing mortgage holder allowing the homeowner to refinance
their existing mortgage with a new loan at a principal balance below that owed on the existing mortgage.
When the short refinance closes escrow, the old, higher balance mortgage is fully “paid off” and the mortgage is fully reconveyed.
Short refinances are relatively rare. The success of a short refinance is often predicated on the motivations of the mortgage holder.
Nonetheless, if you believe that a short refinance is the best option for you, let us know and we will put you in touch
with a short refinance specialist Click Here
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