Many of homepowners who are at risk of default or who have defaulted on their mortgage believe that foreclosure is their only solution. The short answer is "no", there are there other options available.
We have listed 6 other options available for Distressed Homeowners below, how can we help you?
1. HAFA:The acronym for Home Affordable Foreclosure Alternatives. It is a fairly new government program to help homeowners avoid foreclosure. HAFA provides for lenders and homeowners to carry out a short sale or deed-in-lieu of foreclosure. An incentive has been established for homeowners of $3,000 for a successfully completed short sale or deed-in-lieu of foreclosure.
2. HAMP: This is the Home Affordable Modification Program, another government program for the homeowner who is struggling with their monthly payments and a modification of loan terms such as a lower interest rate could bring the mortgage payment down to a level they can afford.
3. 2MP:Second Lien Modification Program. 2MP is for homeowners who are struggling with payments in part because of a second lien on their home. For those who are eligible, the program offers a way to lower payments on their mortgage. 2MP is a complimentary program to the Home Affordable Modification Program (HAMP), so it is meant for those who have already modified their first mortgage through HAMP.
4. HARP: This is the Home Affordable Refinance Program (HARP), if you are unable to lower the interest rate on your mortgage (possibly due to decreased home value), but are caught up on your mortgage payments, HARP may allow you to refinance.
5. Sell and Bring Cash to Closing: This is always an option for everyone! Although many homeowners today may not have the necessary cash to cure deficiencies at closing, they may have to liquidate assets, e.g., U.S. Treasury Bonds or individual retirement accounts (IRA's), to do so. By curing deficiencies at closing, homeowners can avoid the credit damage that a short sale or foreclosure can cause. However, we strongly encourage homeowners to consult with their finance and tax professionals before bringing liquid assets to closing.
6. Lender Workout: Just what it says, an agreed upon arrangement that is worked out between the lender and the homeowner. Lenders will often work with distressed homeowners to help them keep their homes by reducing or rolling back interest rates, forgiving back payments, adding them to the loan amount or possibly recasting the entire loan and wrapping all fees into a fixed-rate mortgage.
The idea here is that you don't sit back and do nothing, give all these options or the one that best suits your situation a try before deciding to 'let the home go'.
We areRedding CA Realtors®, HAFA Short-Sales Certified. We have successfully assisted a number of homeowners avoid foreclosure, for some it meant putting the home up for sale and for others it meant guiding them through the loan modification process so they can stay in their homes. Regardless of your situation, we can help.
Let Us Help You, There May Still be Time.