How to Request Foreclosure Alternatives from your Lender

These can be scary times for homeowners across the nation.  It seems every time the news is on, there is some depressing report about high unemployment, underwater homes and an abundance of Americans losing these homes to foreclosure.

Having a home foreclosed upon is traumatic, both emotionally and financially.  Fortunately, there is an option that will allow you to take back control: a short sale.

If you are struggling to keep up with your monthly mortgage payments, or are already falling behind, then a short sale might be your best option.  However, a short sale should still be a last resort.  Other options you should try to work out with your bank prior to a short sale are a:

• loan modification,
• principal reduction, or
• refinance

Here are some tips to help you when approaching your lender about one of the above options:

• have wage and earnings statements available, if applicable
• have at least the prior year’s tax return
• collect your utility bills for the past three months and average the amounts
• calculate your fixed expenses (expenses that are the same amount every month)
• calculate your variable expenses (expenses that are different amounts every month)
• total all debts
• Be prepared to honestly explain why you are unable to afford your current payment, and do not leave out sensitive details – there is no room for pride in this process.

Once you have this information, contact your lender and ask if you qualify for any programs that will make it easier for you to afford your home.

If you have tried the above and are not eligible for loan modification, principal reduction or refinance, then you need to consider short selling your home.  This will also require your bank’s approval, however, a short sale is far more appealing to them than a costly and lengthy foreclosure.

To learn more about the short sale process, contact Emcee Arah and DeeCee Real Estate online or call 301.452.5252. 

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, Emcee and his team of professionals have made it their mission to know the best possible options available to distressed homeowners for both their present AND their future…and you can trust that your free consultation will be always be completely confidential.