If you are one of the many homeowners affected by job loss, cut wages, sickness or other life events and you find yourself unable to pay your monthly mortgage payment there is help for you.
1. Talk to your lender....yes, you may be on hold for a while (allot at least an hour for your call).
Explain your situation and ask for options.
There are some not-for-profits that will advocate for your rights - they vary from area to area.
Do internet search
2. Loan modification- You have a hardship that qualifies for a loan modification and perhaps you have submitted your paperwork and waited,..and are still waiting. The lender will require some basic paper work - hardship letter, monthly finances (income & expenses), 2 months bank statements, past federal tax returns, 2 month paychecks or Profit & Loss statement if you are self-employed.
If you want to feel like you have more control over this option consider an attorney backed loan modification. The attorney will use RESPA violations and other consumer acts to intercede on your behalf to obtain a loan modification that best suits your current financial situation. If this is an option that you choose contact me and I will be happy to share my connections to the Debt Advisory system that offers attorney backed loan modifications.
3. Short Sale- Due to your current situation you don't qualify for a loan modifcation but you know that eventually you will be able to get back on your feet and want to limit the damage to your credit status. A short sale wiill allow you to sell your home at little or no cost to you and under current underwriting rules obtain a government backed loan within 2 years of your short sale closing.
4. Deed in lieu of - you return the property back to the lender without going through a foreclosure sale.
5. Reinstatement - You make good all past delinquent payments plus collection fees, legal fees. Great if you are able to come up with thousands of dollars in one usually payment. Unless you are expecting a large windfall (MegaMillions, legal settlement) this option is not one that the majority of us will use.
6. Foreclosure - Lender goes through the legal process of obtaining title of your property through legal suit or other legal action. Home may be sold at public sheriff's sale to highest bidder usually lender for 1st lien amount.
The biggest mistake most homeowners make is to try to ignore the calls, letters and even home visits. Don't let your pride or lack of knowledge of your options keep you in fear and your inability to make a decision. Speak to a trusted friend or relative. Contact a Realtor who can discuss your options and refer you to the right source.
If you need a short sale or loan modification call my office and let us help you get back to being able to answer the phone without feer and assist you in making the best decision for your current situation.
There is help but you must take the first step and call.
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