10 Ways to Alleviate the Stress of an Unaffordable Mortgage...

10 Ways to Alleviate the Stress of an Unaffordable Mortgage...

As a CDPE, I can navigate a homeowner through a variety of options. Below I’ve listed some of the most common alternatives to foreclosures that homeowners can choose from:

Reinstatement
·· Benefit: Does not require the mortgage company or lender’s approval.
·· Drawback: Requires that a homeowner be able to pay all back payments and fees.

Forbearance or Repayment Plan
·· Benefit: Allows the homeowner to make back payments over time.
·· Drawback: Requires that a homeowner be in a financial position to pay not only their current mortgage, but also a portion of the back payments owed.

Mortgage Modification
·· Benefit: Reduces the payment a homeowner is required to make on a monthly basis and may reduce the principal balance of the loan
·· Drawback: Requires that a homeowner qualify for the new payment and will often require full documentation.

Rent the Property
·· Benefit: Allows homeowner to keep property indefinitely.
·· Drawback: The issues that can arise with a rental property are many, and rent often may not cover the full cost of property ownership and maintenance.

Deed in Lieu of Foreclosure
·· Benefit: Many times in a successful deed in lieu, the lender will fore-go their right to a deficiency judgment.
·· Drawback: Requires that a homeowner vacate the property,and a deed in lieu may be reported to credit bureaus as a foreclosure.

Bankruptcy
·· Benefit: Does not require lender approval.
·· Drawback: If a homeowner cannot afford their mortgage payment, a bankruptcy will only stall—not stop—the foreclosure process.

Refinance
·· Benefit: In some cases, this will lower payments.
·· Drawback: In today’s market, refinancing will almost always raise mortgage payments and is an expensive process.

Sell the Property
·· Benefit: Allows homeowner to avoid foreclosure and harvest some of their equity.
·· Drawback: In many cases today, homeowners do not have sufficient equity to sell their property without negotiating a short sale (see next solution).

Short Sale
·· Benefit: A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also keeps foreclosure off the individual’s public record, and in many cases will allow the homeowner to avoid a deficiency judgment. Borrower may qualify for another mortgage in as little as 24 months (as opposed to five years for a foreclosure).
·· Drawback: Short sales can be a trying process in which a homeowner is best served by contracting with a qualified real estate agent to guide the way.

Short Sale vs. Foreclosure
Short sales have become an extremely popular and effective method of avoiding foreclosure. It is an option that has received much media attention lately, with claims that it is basically the same thing as foreclosure. Don’t believe the media hype! The benefits of a short sale far outweigh the fallout of a foreclosure, as illustrated in the chart below:

Short sale:
Credit: 150-200 points
Employment: not visible on credit record
Security Clearance: no effect in most cases
Deficiency Judgment: have ability to negotiate non-deficiency
Ability to Buy Home in Future: 2-3 years under certain conditions

Foreclosure:
Credit: 200-300 points, on record 7-10 years
Employment: foreclosure on credit record
Security Clearance: on credit record, will affect in most cases
Deficiency Judgment: no ability to negotiate non-deficiency
Ability to Buy Home in Future: 3-5 years under certain conditions

Choose Freedom from the Stress of an Unaffordable Mortgage.

Join the hundreds of thousands of homeowners who chose to work with a CDPE to relieve themselves of unaffordable mortgages. I can help you or someone you care about create a strategy for living a life without the burden of missed payments. Call me today, and let’s work together to put you back on the path of financial stability.

SPRING, Texas, January, 2011 -- Last week, the Office of the Comptroller of the Currency and the Office of Thrift Supervision released sobering figures in their joint quarterly report: A record 2.9 million U.S. properties received foreclosure filings in 2010, a two-percent increase over the previous year.  American homeowners are struggling -- but short sale negotiation firm Trademark Loss Mitigation is helping to turn the tide.

Since 2003, Trademark Loss Mitigation has been providing no-cost short sale negotiations and processing for real estate agents and homeowners with distressed mortgages. Along with negotiating short sales, the company works with homeowners to gather and submit all paperwork associated with each case and can even purchase properties if foreclosure dates are looming and no buyers have been found.

Homeowners and their agents pay nothing for the service. Instead, Trademark Loss Mitigation collects its fees from lenders or buyers, and lenders pay all closing costs. As part of the settlement Trademark Loss Mitigation negotiates, lenders typically waive deficiency judgments -- the lawsuits lenders can bring against homeowners in certain states when the proceeds of the home’s sale do not cover the amount owed.

Contact:

Jim McNinch
Trademark Loss Mitigation
832-330-4588
jim@trademarklossmitigation.com
http://www.trademarklossmitigation.com
http://www.trademarkshortsale.com
http://www.trademarkforeclosureprevention.com