Loan Modification/Loan Workout
Loan mitigation,..... and handled by a person referred to as "the loan mitigation authority," ask for that one person that handles that for your "loan number."
Deal with 'No one else.' Always deal with same person.Goal of most homeowners is to re-negotiate the mortgage so the homeowner can stay In their home and continue to make 'lessor' payments.
Very popular goal but happening as temporary measure only in one fifth or less so far in most reports,, and like only 3% permanently were granted modifications in many areas last year.
New government program may change all that if you fit the exact requirements.
Check with free government counselors on the new government program. Beware, of those on the web representing themselves as part of the government program.
Investors fit nobodies program, for modification and have slim hopes.Loan Litigation Covered by few,
Being researched by us currently. Hire firm to go through all paper work, if find anything amiss, you hire attorney who then takes entire mortgage to court, delays foreclosure for large length of time if nothing else, and can result in drastic changes if lender has made errors. More on this later.
Paying attorney may be cheaper then rent and may wind up getting you back to square one.Going to court of course restrains lender and stops all foreclosure proceedings.
Loan Reinstatement
You win the lottery, have enough money suddenly to catch everything up. (all this unlikely to happen but is an option) In your dreams.
You simply pay all past-due payments and penalties, Unless you have enough to keep up it all happens all over again.
Do not be confused, tapping out relatives, using up all your savings, running up credit card balances to forestall foreclosure SOLVES NOTHING. All a waste.
You are not Stalling for time. There is NO light at the end of the tunnel of this situation getting better soon, it is only going to get worse.
Refinance
Only a viable option if there is enough equity (a lot) in your property available. You have substantial on going income.
FHA has a program if have very little equity, but steady income that qualifies.
Most properties currently have little or no equity. Plus, loans are impossible for investors regardless of credit rating.
Sell Your Home
You may simply sell your home before the Foreclosure Sale Date. There are so many homes glutting the current market, with all the foreclosures, homeowners are unable to sell the home for enough to pay the mortgage.
Must be accomplished before a Foreclosure Sale Date.
Short Sale,
Becoming a popular option, apparently you can even come up with buyer such as a relative without prior agreement with lender and offer them the low buyers Price, to the lender.
If the bank accepts, even though less then your mortgage, you get bank to sign off as settlement in full.The "short" part of this kind of a sale is when the bank agrees to take less than is owed on your home to a qualified buyer. You usually arrange this with lender and you get 60 days usually to see what you can do. (Hire a real estate agent who gets paid only if bank accepts deal) You can stay in home and show it while living there. Bank saves huge foreclosure costs, and if your state allows them to go after you for a deficiency, you get signed agreement short sale ends your obligation. Other then that you get nothing out of the deal other then maybe extend the living there time. (though your time with free rent is less then other methods.) This is really not easy and can take a long time, with no results. (long as you live there for free...okay)
There are a zillion local real estate professionals who specialize in short sales and are dying to assist you. Get paid out of sale price by lender, only if a deal flys.Deed-in-lieu of Foreclosure
You pre arrange to hand over the keys and the lender agrees to take your home back and you simply walk away, with signed papers saying you are off the hook. Some lenders actually pay the labor $1.000 to $2,000 moving expenses to leave on their time frame, and leave the home in good condition (not trashed) You negotiate this. If you have to move on account of job change etc this might be a good one.
Bankruptcy
This is at bottom of list but has real zinger..This will not only save your home temporarily, (extend the time considerably,) it may even solve it long term. This should be looked into as a very workable option if you have very few assets and a lot of credit card debt etc. You will likely need legal help but is relatively inexpensive procedure. Two kinds, you can file for Chapter 7 and Chapter 13 bankruptcy, read up.
Foreclosure,
We refer to this as "Walkaway" or more likely if do it to max, last minute pushed away. (five days or more on final) only then walk.This may appear as the most damaging to you on the surface, but when looked at long term, often as a business decision it is not. The lender will take your home and all of your equity, but you will get to live in it for free for six to 18 months, depending on your state.
You squirrel away money for big move to better digs at end of period.If you owe more then raised from sale to cover the mortgage and it fails to raise it in the sale, your lender may get a deficiency judgment (in all but 8 states) (AZ and Ca among them) against you and come after you to repay the shortage or “deficiency”. This apparently rarely happens in practice but if you have lots of assets is a possibility.
This full "foreclosure" is the most damaging to your credit score and your ability to acquire another home loan for a period from two or more years.Your clearing out early does nothing to improve this and your staying to take advantage of the free rent period, helps the bank keep the property in "not vandalized" condition, helps keep prices up in the community. SO STAY PUT...do NOT run away.
Your hanging tough and sitting tight in your home long term. improves your negotiating ability with the lender and their knowing you intend to do so helps your negotiating position, them not thinking you are scared to death of what the lender may do next. You are informed on all stages of the procedure and there is almost nothing sudden or surprises if you are aware of procedures required. You can get plenty of competent free counseling on your extensive rights.
You are doing a community service by keeping the home occupied. Nothing worse then empty vandalized "being foreclosed" homes all over a neighborhood. Ask for "moving" costs as part of keeping the home in good condition for the lender for the extensive time it takes for them to go through all the expensive procedures.
You can go over this and over it, check with as many experts as you like, but those from our research are your only options. You try best one and when that does not work and you have exhausted possibilities, you move to next most advantageous option.
Best bet......
be resigned, able and ready to walk away since it may well be your best option right from the start.
