This is a series of posts about preventing foreclosure. First of all, my best advice for anyone who even thinks they are going to miss a mortgage payment is to contact your mortgage company IMMEDIATELY. If the loan is Fannie Mae or Freddie Mac insured, then the lender is required to work with you to prevent foreclosure. There are five specific foreclosure prevention plans: Repayment, Modification, Deed-in-Lieu of Foreclosure, Assumption and Pre-foreclosure Sale.
A repayment plan is a structured arrangement where you repay the delinquent payments and bring the loan current. The lender will work with you to create a repayment plan that works with your budget. Examples include a short term forbearance which allows for the suspension of payments or a short term repayment plan where the missed payments are repayed over a set period of time. The key is to contact your lender as soon as possible.
Another way to prevent foreclosure is to apply for a loan modification. Your lender has the power to change one or more terms of your loan to bring it current. Term changes can include reducing your interest rate, extending the loan term, providing negative amortization, replacing an adjustable rate with a fixed rate, capitalizing delinquent payments, etc. Of course a change in your terms requires you to contact your mortgage company and stay in contact with them. You must stay on top of it as they will more than likely continue with the foreclosure process until an agreement has been reached.
This is the first installment of a series of posts about foreclosure prevention. If you know of someone facing foreclosure, please contact me. I am more than happy to discuss their options in a confidential consultation.
Scott Eaves, Associate Broker
(404) 518-3820 - DIRECT
(404) 920-3439 - FAX
www.scottsellsatlanta.com
Keller Williams Realty/Atlanta Classic 3800 Camp Creek Parkway, Suite 18-100 Atlanta, GA 30331
(404) 564-9500
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