Collette Hines & Sharon Henry Can HELP!

Now is the Time to Stop Foreclosure! You Have Options

Options

If you have become delinquent on your mortgage(s) you will receive tons of information, some not so subtle suggestions, from many people who want to take advantage of your temporary misfortune. They will attempt to scare you by telling you that time is your enemy and that you must act immediately to save your credit. This will normally be followed by a proposal to solve your problem by suggesting that you sell or deed your property to them.

BEWARE! Don’t do anything until you understand ALL of your options.

Here are some of your options:

* Reinstatement

If your situation was temporary and you have the funds necessary to bring your mortgage up to date, the lender(s) will typically allow you to reinstate your mortgage(s) and end the foreclosure process.

* Refinance
* You can refinance the property and pay off existing loans. However, you must have sufficient equity in the property. We do work with lenders that can assist you with refinancing your property. * Deed in Lieu
* In a Deed in lieu of foreclosure, the borrower conveys all interest in the property to the lender to satisfy a loan that is in default in order to avoid foreclosure proceedings. This is not a popular option for lenders given the depressed value of properties in many markets. The lender may also want you to agree to pay a certain amount in addition to giving up your property. * Loan Modification
* In an effort to help distressed homeowners keep their homes, lenders are more willing to consider loan modifications. A loan modification, or "workout", is a permanent change in one or all of the terms of an existing mortgage(s), i.e., a lower interest rate, an adjustable to a fixed rate loan, longer amortization period. The past amounts owed, including penalties and attorney fees, can be added to the balance of the new loan. In some cases, the lender(s) may agree to waive these fees or even lower the principle balance, in what has come to be known as a "Short Re-Fi". * Sell Your Property
* You can sell the property if you have enough equity to cover all of the costs associated with the sale or are able to bring cash to the closing table to cover any shortfalls. As full service real estate professionals, we can assist you with the sale of your property. * A Short Sale
* If you owe more than your home is worth, you can look at negotiating a discounted payoff with your mortgage company. We can negotiate with the lender(s) on your behalf to get an approval for a Short Sale. Keep in mind that the lender(s) almost always pays all the sales costs, including title and escrow fees, commissions and most repairs. *Forbearance Agreement
* For borrowers who have experienced a temporary event that has caused them to fall behind on their mortgage(s), a Forbearance Agreement with the lender(s) is a viable option. In most cases, the lender(s) look(s) for two things when considering a forbearance agreement:
1. Why the loan became delinquent in the first place. It helps greatly if the problem was something beyond the control of the borrower – serious illness or injury, temporary disability or a one-time disruption in income.
2. That the borrower’s financial difficulties have been corrected. The mortgage company wants to know that the borrower is now on a solid footing and can be counted upon to make regular loan payments as agreed. The new payment will probably include a set amount that will count towards the delinquent amount. * Do Absolutely Nothing
* This is always an option but not recommended. Sadly many borrowers do exactly that, nothing. In fact, in a large percentage of homes foreclosed on, the sellers never even attempted to sell the property. We understand that you can become overwhelmed and intimidated by your situation and although it is a daunting burden, the ramifications of a foreclosure are very serious. That being said, at the very least you owe it to yourself to consider all of the potential solutions that can help you avoid foreclosure.