Options For Homeowners to Avoid Foreclosure...

Reinstatement - To reinstate a mortgage, the homeowner has to pay all the missed payments, late fees and legal fees that are due up to the date that the loan is reinstated.

Forbearance ( or Repayment Plan) - The lender allows the buyer to pay the missed amount over a period of time or the lender places the missed payments on the end of the amortization of the loan.

Rent the Property - In some cases, homeowners facing foreclosure will have payments low enough to allow them to rent their property and keep up their mortgage payments.

Sell the Property - If sellers have equity in their property, they can sell it and prevent a foreclosure.

Refinance - If homeowners have sufficient equity and income and their credit has not been too badly damaged, they may be able to refinance.

Mortgage Modification - A loan modification is very similar to a lower interest refinance where the lender lowers the interest rate on the existing loan to lower the payments.

Short - refi - This process involves the refinance of a home with a reduction in the principal balance and often the interest rate as well.

Deed-in-lieu of Foreclosure - A deed-in-lieu of foreclosure is sometimes referred to as a "friendly foreclosure" because the homeowner essentially gives the deed back to the bank.

Bankruptcy - A bankruptcy may stop a foreclosure and allow homeowners to reorganize their debt.  It may allow a homeowner to keep their property but it could only be a means of postponing the foreclosure. A real estate attorney should be consulted.

Servicemembers (Civil Relief Act, SCRA) - This law provides certain protection to military personnel who are in foreclosure in specific situations.

SHORT SALE - When homeowners owe more on a property than it is currently worth and one of the previous solutions does not apply to their situation, there is the option of pursuing a short sale.

With a short sale, you want a CDPE on your side to handle the paperwork (a package of 47 pages, give or take a couple, needs to be compiled and sent to the lender), negotiate on your behalf and be on your side in this time of crisis.  Give me a call to see if I can help you.  310-686-4903.