IS YOUR MORTGAGE OUT OF BALANCE WITH YOUR BUDGET?
It can happen quickly.
An expensive car repair, an emergency, an unexpected illness– just a couple of little things and the life you’ve worked so hard to build and your finances can begin to feel completely out of balance.
No one is immune from the housing crisis in this country. The foreclosure crisis has hit every income, every region and every education level. Take a look at some of these numbers:
• Number of consecutive years home prices have fallen: 5
• Number of homes lost to foreclosure since 2007: 7.9 million.
In 2011, 1.9 million homes were foreclosed on. In most economic times, that would be a lot of homes, but that was actually the lowest number of foreclosures since 2007.
When you find yourself in financial distress because of an unaffordable mortgage it can make you feel like the scales are tipped against you and that there is no way out.
You have options.
Real estate professionals who have earned the Certified Distressed Property Expert (CDPE) designation are on a mission to help you. They are specifically trained to provide you with options and help you avoid scams.
REMEMBER: DOING NOTHING DOES NOTSOLVE ANYTHING!
Foreclosure results from non-payment of a mortgage and is the final step in a delinquency proceeding. Far too often, homeowners don’t reach out for help before letting this happen.
The unfortunate fact is that there’s a lot more to foreclosure than losing your home. Foreclosure carries long-term consequences. It affects your credit. After foreclosure it will be 7 years or more before any bank will consider letting you buy a home again.
The fact is foreclosure almost never needs to happen— especially today.
When you contact a CDPE, he or she will go over your options to avoid foreclosure. Here are some of them:
Was the reason you missed your payments temporary and now the issue has been resolved? If you can make a one-time payment that includes all missed payments, legal fees and late fees, you are eligible to be reinstated back into your loan agreement.
Forbearance or Repayment Plan
If the hardship which caused you to miss your payments was temporary but you cannot afford a payment to qualify for reinstatement, you may be able to negotiate a forbearance or repayment plan. In this case, you may be able to pay the missed payments over time, or the payments can be placed at the end of the scheduled loan amortization.
Sell the property
If you have equity in your property than can cure the foreclosure (and you have time to wait for a buyer) then this may be an option for you.
Rent the property
Renting your home might be an option which enables you to pay your mortgage. You are still responsible for all costs associated with the house including maintenance and taxes.
In some cases, you may be eligible to modify your loan in a way that reduces principle or lowers payments. Some of these programs vary from bank to bank but there are also government sponsored programs which are available to help homeowners in distress.
If you have enough equity in your home, refinancing may help you get back to more affordable payments. This will be determined by your credit, if you are current on your loan and how much theproperty is worth.
In some cases, bankruptcy is an option. It may stop foreclosure and allow you to reorganize your debt. The stoppage is only temporary and if you are still unable to make payments then foreclosure will go through anyway. It also makes a property much more difficult to sell.
You sell your property for less than it is worth and the bank, realizing that some money is better than no money at all, agrees to release you from your obligation to the remainder of the loan. In some cases, you are able to walk away from the loan clear of any obligation.
PLACE YOUR CONFIDENCE IN CDPE
With the right assistance, the stress of facing foreclosure becomes manageable. CDPE-designated agents have received the knowledge and training necessary to assess all possible foreclosure alternatives and pursue homeowners’ best options. A CDPE-designated agent attends several days of intensive, thorough training on foreclosure avoidance and how to negotiate short sales efficiently and ethically. The highly regarded CDPE logo means you are working with the most informed, up-to-date resource available.