- Do You Know Of Someone Who Is Falling Behind On Mortgage Payments Or Facing Foreclosure?
- Are You Facing Foreclosure?
If you or someone you know is having difficulty making monthly mortgage payments due to financial difficulties created by any of these conditions, we can help ...
- Unemployment
- Reduced Income
- Business Failure
- Divorce or Separation
- Excessive Debts
- Medical Bills
- Death of Spouse
- Payment Increase or Mortgage Rate Reset
- Illness
- Job Relocation
- Business Failure
- Incarceration
- Military Service
- Damage to Property
- Lawsuit/Judgment
- Any other reason
As "CERTIFIED DISTRESSED PROPERTY EXPERTS©", we can help SAVE 8 out 10 families from going into Foreclosure! But the clock is ticking! You must act quickly.
WE CAN EASE YOUR FRUSTRATIONS!
FORECLOSURE IS NOT THE ONLY WAY OUT!
National statistics show that over 2 Million people, or 4.5% of all mortgage holders, are currently in Foreclosure, and approximately 1 in 10 are currently in default. Over 70% of all homeowners that lost their home to foreclosure last year did so because they were "NOT" well informed and did "NOT" know their options.
THE GOOD NEWS - Your bank DOES NOT want your home, especially in this market, BUT they will take it if you do nothing! They want to work with you, but they are very busy right now and time is of the essence.
Your growing list of options include:
1. Reinstatement - If the reason you missed your mortgage payments is temporary, you can reinstate the mortgage right up to the bank sale. A simple reinstatement requires a one time payment of all delinquent funds in full. Perhaps a loan from your 401K or a family member might make sense IF you can pay back the short term loan.
2. Forbearance or Re-Payment Plan - If the issue that caused the missed mortgage payments was temporary, but you are not able to make a onetime reinstatement payment, a forbearance or re-payment plan might be negotiated. Do not sign a Forbearance Plan without having a competent attorney review, there can be some land-mines thrown in by your lender. Never sign anything that waives your right to later file bankruptcy.
3. Sell the Property - If you have equity in the property, you can hire a real estate consultant and Realtors, like us, to help you get the property sold quickly and cure the foreclosure. You must be aware of the foreclosure time line and price your property accordingly.
4. Rent the Property - If your payments are low enough that a rental situation can help you keep up with your mortgage payments, this could be part of a good short term solution to help you get your finances back on track.
Note of Caution: If you as the owner do not occupy the home, you will have fewer options available. Renting or vacating the property should only be done after careful consideration of your best options.
5. Refinance - If you have verifiable income, sufficient equity in the home, and your credit hasn't been too badly damaged, this option can get you some breathing room while you restructure your financial situation. I can recommend several outstanding lenders who work with refinancing even in difficult situations.
6. Mortgage Modification, also called Loan Modification - An increasingly popular option which changes the terms of the original mortgage is loan modification. This can include lowering your interest rate, increasing your amortization term, extending the maturity date, and possibly even reducing the principle balance. Your lenders "Loss Mitigation Department" can help here. Most lenders are rapidly scrambling home ownership retention teams. Give them a chance to work with you, but do not wait for them if they are not returning calls or give you the run around, remember, the clock is ticking.
In your FREE initial consultation, we will evaluate if this option might work for you, and give you guidance on how best to approach your lender(s).
Streamlined loan modification program (SMP) - Federal Housing Finance Agency (FHFA) program geared toward homeowners who are 3 months behind and have not filed for bankruptcy. This is a relatively new program and not all mortgage companies and lenders are participating. The target ratio for an affordable payment is 38 percent of monthly gross household income.
7. Short Refinance - This is a new phenomenon and somewhat of a Loc-Ness monster. Although we've heard stories of some mortgage companies and lenders refinancing and lowering both the principle balance and the rate, we have NEVER seen proof.
8. Deed-in-Lieu of Foreclosure - Known as a friendly foreclosure, this is still a foreclosure and will appear on your credit report as a foreclosure. Mailing in the keys instead of the mortgage payment is usually not the best option. If you have any equity, you lose the right to that equity. This usually only works if there are no other liens on the property. If you have a job with a security clearance, contact your superior or HR before considering this option.
9. Bankruptcy - This may stop a foreclosure and allow you to reorganize your debt and keep your property, but most of the time this just delays the foreclosure. This option also makes it very difficult to sell you home once the process is entered.
10. Service Members Civil Relief Act (SCRA) - Public Law 108-189, December 2003. This provides military personnel in specific foreclosure situations certain protections. Check with your JAG officer. The most prudent course of action may be for you to sell the property. Act quickly, a foreclosure or bankruptcy will impact your security clearance.
11. Short Sale - If you owe more on your home than it is worth, and none of the above solutions for keeping your home will work for you, there is the option of pursuing a short sale. This is a very complex transaction wherein we negotiate with your lender(s) to take less for the mortgage payoff than is currently owed in order to get you free of the burden of a home you can no longer afford. Since the closing costs such as attorneys fees, commissions, and transfer fees will be paid by the lender, this can truly be a no cost to you transaction. As of this writing there are only a select few Certified Distressed Property Expert (CDPE Professional) Realtors, like us, in the Central Pennsylvania area. It can cost you a lot more to hire someone who does not know how to get a short sale through the banks; Currently, most 'short sale' listings nationwide end up in foreclosure due to agent inexperience in getting the short sale through the process. You deserve and need the best educated CDPE Realtor, like us, in these difficult times.
What to do next?
Visit www.foreclosure-pa.com OR www.shortsales-pa.com . Review the information there and contact me fot a free consultation. paul@paullorenzetti.com
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