I am a Certified Negotiation Expert (CNE) and certified in Short Sales and Foreclosures (SFR). I am here to put my knowledge and experience to work for you!
There are many homeowners who are at risk of default or who have defaulted on their mortgage and believe that foreclosure may be their only solution. There are many other options available!
- Sell and bring cash to closing
- Lender workout
- Short Sale
- Deed in lieu of foreclosure
The worst thing you can do is DO NOTHING!
There is the new Home Affordable Refinance Program (HARP) plan that may help homeowners who are current with their mortgage payments to take advantage of today’s mortgage rates and keep their homes by refinancing.
Effective April 5, 2010, the new Home Affordable Foreclosure Alternatives (HAFA) guidelines take effect. This is meant for people in a Home Affordable Mortgage Program (HAMP) to streamline the Deed in Lieu process. Banks are asked to pre-approve short sales (will not need a contract first) and services will have 10 days to approve the contract.
Lenders are working with distressed homeowners to help them keep their homes by reducing or rolling back interest rates, forgiving back payments, adding them to the loan amount, or possibly wrapping all fees into a new fixed-rate mortgage.
The National Association of Realtors have discussed options such as:
Mortgage Loan Workout Options
- Forbearance. Lenders may let you make a partial payment, or even skip a payment if you have a reasonable plan to catch up.
- Reinstatement. This refers to making a payment that covers all your late payments, and usually at the end of a forbearance period.
- Repayment Plan. If you are unable to afford a reinstatement plan, the lender may let you pay an additional amount each month until you are caught up.
- Loan Modification. Your lender may agree to amend your mortgage to help you avoid foreclosure.
- Short Sales. When the lender has not yet foreclosed on the property, and allows a window of opportunity for the owner to sell the property to partially satisfy the amount owed to the lender.
- Signing your Property Over to the Lender in Exchange for Debt Forgiveness. This is also known as a deed in lieu. This is better than having a foreclosure on your credit, but can also hurt your credit.
Please call me if you would like to discuss any of these options more in-depth. I look forward to working with homeowners and helping them know there are options available.
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