Solutions for Waconia Homeowners in Distress

Real Estate Agent with ReMax Action West

The current US housing market and national financial crisis have caused untold stress and heartache for many American families.  The options for foreclosure are many however.  


A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests to know the total amount owed to the mortgage company to date, and then pays it.

Repayment Plan:

This plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time.

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 or all of the above. This typically results in a lower payment for the homeowner and a more affordable mortgage.

Property Rental:

Convert the property to a rental and use the rent money to pay the mortgage.

Deed in Lieu of Foreclosure:

Also known as a ‘friendly foreclosure’, a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. A deed in lieu requires lender approval and requires the homeowner to vacate the property.


If the homeowner has good credit and enough equity in the home, this is a possible solution.

Short Sale:

If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell the property through the negotiation of a short sale with their lender. This typically requires the property to be listed on the market, and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of home purchase and the date of the short sale negotiation. Acceptable hardships include, but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and others.

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