|
What Are Your Options?
 
You DO Have 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:
- 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
Sell Your Property
- You can sell the property if you have the equity in your property and can afford to wait out the time it may take to currently sell your home at a fair market value. As full service real estate professionals, we can assist you with the sale of your property.
- 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.
- Negotiate a Forbearance Agreement with your lender(s).
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.
- This is always an option but not recommended. Many borrowers can become overwhelmed and intimidated by their 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 yourselves to consider the potential solutions that help you avoid foreclosure.
|
|
|
