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What are Other Foreclosure Avoidance Options?

By
Real Estate Agent with SANDALS REALTY GROUP, INC

What are Other Foreclosure Avoidance Options?

Foreclosure is one of the most devastating financial challenges that a family can face and many times, it can be avoided. A short sale is not the only alternative to foreclosure. Here are others:

 

Reinstatement. A reinstatement is the simplest alternative to a foreclosure—when it’s possible. Following a period of nonpayment, the homeowner simply pays the mortgage company the total amount due to date, and the mortgage is reinstated.

 

Forbearance. A forebearance is repayment plan that involves a negotiation with the mortgage company to make additional payments over a period of time in order to become current on the mortgage.

 

Mortgage Modification. A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. Be sure to never work with a mortgage modification company that requires an upfront fee. I can provide a list of HUD-approved counselors and mortgage modification resources.

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