Do nothing
I. Resulting in the loss of the home in a foreclosure and being evicted.
II. Mortgage and credit applications generally ask if you've ever been in a foreclosure.
III. Credit reports will disclose this damaging information making it difficult for you to obtain financing or insurance in the future.
Refinance
I. Avabile if you a equity in the home. Rarely the case in today's market.
II. May provide a lower interest rate and payment.
III. May allow consolidation of several loans.
IV. Could increase your payment & interest rate.
Repayment Plan
I. Usually for short-term financial problems when you're one or two payments behind.
II. Allows you catch up by allowing you to make small payments in addition to your regular monthly mortgage payment.
III. Reinstatement
IV. The borrower must make all missed payments, fees, and penalties attached to loan in addition to paying the mortgage payment.
Loan Mod
Lender agrees to make a permanent change to the rates/terms of the existing loan. Usually results in lower payments by reducing the interest rate and/or increasing the length in terms.
Forbearance
I. Usually used when more than two payments were missed.
II. Typically works if reason for distress was temporary.
III. Bank cannot accept money from borrower without written agreement in terms.
IV. Mortgage is not reinstated until repayment has been completed. ONE missed payment can put you back to where the foreclosure process was stopped.
Deed in Lieu
I. Banks accepts deed rather than foreclosing.
II. Loan maybe still reported as foreclosure on credit.
III. Typically only works with one mortgage.
IV. You have to agree to move out of the property and leave it in "broom kept" condition.
V. The bank avoids the time and costs spent on a foreclosure.
VI. The bank may require a promissory note.
If unpaid loan is higher than the property Fair Market Value banks usually consider seller to do a short sale first.
Rent the Property
I. Can the property be rented out for the mortgage amount?
II. In many cases in the Bay area rent does not cover the full expense of the mortgage plus taxes, cost of insurance, and utility expenses.
Sell the Property
Through a traditional sale if there is equity in the home to pay off the unpaid balance of the existing mortgage.
Through a Short Sale the loan balance is more than market value of the property. Also known as "House being underwater". This is where the lender and/or liens holders agree to accept less than the amount owned to sell the home.
We Have Saved Over 1000s Diego Families From Foreclosure Through Successful Short Sale Closings And Loan Modification! For A 15- Minutes FREE Report on Foreclosure Vs. Short Sales, Call 760-752-1800 or Visit our website www.shortsaleofsandiego.com for free consultation or you can simply email us at info@shortsaleofsandiego.com
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A 15- Minutes FREE Report on Foreclosure Vs. Short Sales, Call 760-752-1800 or Visit our website www.shortsaleofsandiego.com for free consultation or you can simply email us at info@shortsaleofsandiego.com
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