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8 foreclosure Relief Options8 Foreclosure Relief Options
1) Forbearance – an agreement with the lender that temporarily allows the homeowner to pay less than the full amount the mortgage payment, or perhaps even nothing at all, during the “forbearance period”. Lenders might consider forbearance when you can prove to them that funds from a bonus, tax refund, or other source will bring the homeowner’s mortgage payments current at a specific date in the future.
2) Reinstatement – occurs when the homeowner pays the lender the total amount they are behind in a lump sum, by a specific time in the future. A reinstatement is often combined with forbearance.
3) Repayment plan – is an agreement with the lender that gives the homeowner a fixed amount of time to repay the amount they are behind. They do this by combining the homeowner’s delinquent portion along with their regular monthly payment. At the end of the repayment period, the homeowner has paid back the delinquents mortgage and is now current.
4) Loan Modification – is a written agreement between the lenderand the homeowner that permanently changes one or more if the original trems of the note. This makes the payment more affordable. Common loan modifications include:
· Adding missing payments on top of the existing loan balance.
· Turning an adjustable- rate mortgage into a fixed –rate mortgage.
· Extending the number of years the homeowner has to repay the loan.
5) Refinance. –Refinancing requires income, credit. And equity to support a new mortgage or deed of trust. If your current income cannot pay your present mortgage, it may be difficult to convince another lender to offer you a loan with a reasonable interest rate. Based upon the more stringent standards of qualifying criteria for loan applications, refinancing in today’s market is becoming less and less of a viable option.
6) Short –Refinance- This is the latest trend for lenders in working with delinquent borrowers to avoid foreclosure. The lender agrees to refinance the home with a reduction in the principle balance. Sometimes the lender will also reduce the interest rate as well on the new loan. The borrower needs to provide proof of a “hardship” and fully document the ability to pay the new mortgage.
7) Bankruptcy - A bankruptcy may allow the homeowner to discharge some debt and reorganize the others to keep the property, however, if homeowners do not or cannot make the house payments after the bankruptcy, the home is foreclosed on anyway. Homeowners need to seek legal counsel if they want to pursue this option.
8) Short Sale – If the sale proceeds are less than the total amount owed to the lender, the lender(s) may agree to a short payoff or “short sale” and write off the portion of the homeowners mortgage that exceeds the net proceeds from the sale.
Shortsale Questions.
Q) What is a short sale?
A) A sale in which the loans and other obligations against the property exceed the price the property can be sold for and the homeowner is unable to pay. Q) Why would a lender agree to voluntary reduce the amount owed to them? A) After analyzing the numbers and the risks the lender may determine that they will recieve more money from a short pay off than they could if they went through a foreclosure. Q) Will the seller be completely relived of all debt at the closing of a short sale? A) They may or may not depending on the lender and the circumstances. Many lenders are exercising thier right to recieve monthly payments towards the amount forgiven after closing of escrow. They may request that the seller sign a promissory note at closing. Q) What is the Mortgage Forgiveness Debt Act of 2007? A) prior to this act, the amount of debt forgiven in a short sale was taxable as income to the homeowner. This act allows the exclusion of the forgiven debt as income if certain criteria are met. It may or mat not apply. The seller should check with a tax professional. There is also information on this subject on the ITS website www.irs.gov Q) How long does a Short Sale Take? A) The short sale process takes time but is mandated to streamline the process by April 2010. Annie Koesterman
253 853 2552 Gig Harbor 11515 Burnham Drive NW Gig Harbor, WA 98332 |
Annie Koesterman
at
Keller Williams Realty
Certified Pre- Foreclosure Specilist.
Everyone has heard about Foreclosures and Short sales.
But did you know there are other options?
Save your credit and sanity by calling my shortsale hotline.
Everyone has heard about Foreclosures and Short sales.
But did you know there are other options?
Save your credit and sanity by calling my shortsale hotline.
I realize that this is a difficult time for Home owners.
Please do not give up.
Foreclosure is only one option and while you may have explored other ways to save your home, credit and sanity.
Have you tried a SHORT SALE.?
The news is always gloomy when it comes to Real Estate Sales but unless you give it a try how are you to know?
We may be able to help.
As aCERTIFIED PRE-FORECLOSURE SPECIALIST , I are in a position to work with both you and your Bank. From helping you write your hardship letter to fully marketing and selling your home. We have put together a team of Lawyers, Negotiators and Accountants to help you through the Process. This may sound expensive but some of this service is free and other’s you may be able to write off on tax returns and closing cost.
PLEASE DO NOT GIVE UP YET!
Call now and a 20 minute interview, which can be done over the phone, could give you peace of mind and the help you need. It’s FREE what have you got to lose?
Email shortsales.kw@gmailcom
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Choice or Chance?
Choice or Chance?
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