Homeowners have many options available to help avoid foreclosure. Whether you’re trying to keep your home through Loan Modification or interested in getting from under your home by selling as a Short Sale, we can help you explore all of your options. Read the information below to discover how we can assist you.
One of the easiest ways to avoid foreclosure may be to lower your mortgage payment by refinancing¹. If you presently have a high interest rate (e.g. 5%, 7%, etc.), you can potentially refinance your home which can possibly reduce your mortgage payment even if you owe more than your home is worth².
A mortgage payment with a $150,000 balance at a 7.00% interest rate is approximately $1,325 (including estimated taxes and insurance).
A mortgage payment with a $150,000 balance at a 3.75% interest rate is approximately $1,022 (including estimated taxes and insurance).
As you can see the difference between Example A and Example B is just over $300. If you can qualify to refinance your home at a lower rate, it could help you keep your home. Contact us to connect with a mortgage lender who can consult with you regarding your refinance options.
¹Refinance rates and qualification is subject to lender approval. ²Option to refinance with a balance that is more than what your home is worth is not available with all banks and is subject to your bank’s approval.
We can perform a FREE Market Analysis on your home to help determine if you have enough equity to sell. You may be able to get from under your home by bringing a relatively small amount to close, break even or even possible walk away with a profit. Contact us today to see what your home is worth.
If you are behind on mortgage payments, your bank may offer a program that will allow you to setup a repayment plan. A repayment plan is an agreement between you and your mortgage company. It can be utilized to pay past the past due amount over an extended period of time. Contact your bank to determine if they provide a repayment plan.
You may only need time to get back on your feet. If your bank offers a forbearance option, you could temporarily reduce or suspend your monthly payments for a specified period of time. This can allow you to stay in your home and avoid foreclosure. Contact your bank to ask about forbearance.
Similar to the features of refinancing, your bank may offer a loan modification program to change the original terms of your mortgage. From reducing the interest rate to extending the term of the loan, modifying your loan could help you avoid foreclosure. Contact your bank to ask if they have a loan modification program.
If you owe more than your home is worth and the above options are not available to you, then you may wish to consider a short sale. An approved short sale is when your bank agrees to accept less than what you owe on your home. You can continue living in your home through the short sale process. We can work directly with your bank to assist you in listing your home as a short sale. Contact us today to learn more about the short sale process. All short sales are subject to bank approval.
DEED IN LIEU OF FORECLOSURE
When none of the above options are available to you, your bank may consider Deed in Lieu of Foreclosure. With this option, you virtually transfer the ownership of the home to the bank in exchange for a release of the mortgage. While it’s not foreclosure, this option can impact your credit the same as foreclosure. Contact your bank to learn more about Deed in Lieu of Foreclosure.
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