Deed in Lieu of Foreclosures & Loan Modifications
Arica Song
Realtor
Harpole Real Estate Group
Phone: 541-736-6314
These are two options available to homeowners that are behind on mortgage payments:
A Deed in Lieu of foreclosure is legal yet risky. This option does not necessary clear away all judgments against a property owner.
Homeowners may find that they have escaped demands of other parties only to discovers that some of these outside parties where not a part of the deed in lieu transaction and hence can continue to come after them for owned money.
Deed in Lieu of foreclosure agreements tend to only be used if both parties can agree the property will be transfer for the amount of the debt owed.
Basically a property owner gives the deed back to the lender and walks away from the residence.
The property becomes bank owned, the lender my auction the property to hire an REO listing agent to sell the property.
The United States government stepped in several years ago to incentives financial institutions to conduct Loan Modifications. Forbearance is a type of loan modifications in which a lender agrees to postpone or reschedule payments in a way that allows homeowners to catch back up. Rate and terms can often be re-negotiated with lenders as well as modifications to the current note. When applying for a loan modification a homeowner must prove they CAN afford to keep their home, and when applying for a shortsale a client must prove the CANNOT afford to keep their home. Indecisiveness by a homeowner can muddy up the water and possibly “turn off” a lender and potentially disqualify a homeowner from a loan modification and a shortsale. Changes to loan modification program are constant, as the government is working to help more homeowners avoid foreclosure and stay in their homes.
Arica Song
Realtor
Harpole Real Estate Group
Phone: 541-736-6314
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