Walking away from your home has consequences for the family, the community, the market and the economy. However, there are options that homeowners should consider before leaving:
Short Sale: Homeowner has a financial hardship and qualifies for a sales transaction where the lender is willing to accept the payoff of a mortgage for less than what is owed.
Deed-In-Lieu of Foreclosure: Homeowner returns the property to the lender rather than go through the foreclosure process.
Sell the Property: Homeowner with sufficient equity lists their property with a qualified agent that understands the foreclosure process in the area.
Rent the Property: Homeowner with a mortgage payment low enough the market will allow it to be paid converts their property to a rental.
Loan Modification: Homeowner negotiates with lender to modify the interest on the loan, the principal balance, or any combination of these, resulting in a lower payment.
Home Affordable Foreclosure Alternatives Program (HAFA): Homeowner qualifies for HAFA and is offered pre-approval short sale terms and cash incentives for relocation assistance.
Forbearance or Repayment Plan: Homeowner negotiates with the mortgage company to allow them to repay back payments over a period of time.
Refinance: Homeowner with significant equity in his/her property and good credit standing refinances their mortgage.
Reinstatement: Homeowner requests the total amount owed to bring mortgage payments current and pays it.
To learn more about these alternatives or to see if you qualify, please contact me today!
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