Call Now for a FREE CONSULTATION 480-225-7188 

You are not alone.

Many Homeowners have had unexpected Financial Situations that have caused them to fall behind. With Adjustable Mortgages, many Investors have been ‘Treading Water’ – properties are upside down in Equity, current mortgage payments are greater that what they can rent it for.

You have options:

Your Lender wants to work with you. If not, then they still want to work with you in a Short Sale or Deed in Lieu Situation. Keep in mind that Lenders make money when their customers are current and are making payments. They make money off of the interest that they charge. When a Home Owner falls delinquent, it costs the Lender money! Sometimes thousands of dollars to collect on, Foreclosed on, and then sell in an REO situation. As always, we do recommend that a Home Owner consults with a CPA for Tax Implications, a real estate attorney, a real estate agent or broker, and any other Foreclosure consulting companies to help them understand the options and potential implications of a Short Sale, Foreclosure, Bankruptcy and Deed in lieu.

Short Sale:

 By definition is a Lender accepting less than the full payoff. A common mistake Home Owners make is to assume that the Lender or Lenders would not accept a Partial Payoff.  Or a Home owner might list the property for to high – resulting in no activity or offers. In addition, a Home Owner might list the property for under market value and assume that the Lender will take any offer. This can result in a big waste of time and effort. We suggest that you contact us for a Comprehensive market analysis. We have a team of specialist who work directly with different Lenders to provide them with Market Values and trends.

Short Refinance:

These are rare but we have seen them happen. What this involves is the Home Owner getting approved for a loan – but it’s not enough to cover the pay off from the lender. It is somewhat similar to the Short Sale process except for one important thing….The Home Owner stays in the home! Typically creative financing is involved here and like always so are the numerous calls and negotiating with the Lender.

Quick Sale:

This is a little tricky in today’s Real Estate market. In most cases, this type of solution is directed to an Investor who has the ability and Capacity to purchase the home in 2 weeks or less. Again, this could be an option for you. We will need to review your case to see if this would be a good fit for you as the Home Owner.

Modification:

 Most lenders are being Pro Active today. They recognize that interest rates are climbing; payments are climbing while Home Owners Incomes are staying the same – If not getting worse because of a temporary Financial Hardship. This typically involves Contact with the Lender, explaining the Hardship and completing a Financial package to be reviewed by the Loan Resolution Team. This process can last weeks and can become stressful. We recognize this and have a dedicated Team of Representatives who works directly with your Lender on a daily/weekly basis to resolve issues that arise in this process.

Extension:  

This is a common collection tool that many Lenders use. The terminology does vary from Lender to Lender, but in most cases this simply means that a Home Owner can Extend the term of the Note by adding past due payments to the end thereby bringing the mortgage current.

Deed In Lieu:

This is signing the property back over to the Lender. It means that in Lieu of the Foreclosure, a home Owner is voluntarily giving the property back to the Lender. This saves the Lender time and money. In this industry, most Lenders do want the Home Owner to attempt to market the property for a few months before they will consider this option. There are also certain criteria that the Home Owner must meet. Please call us for a detailed explanation of this option.

Forbearance:

This is another tem that varies from Lender to Lender. Many Lenders offer a re- payment plan which is based on the Home Owners ability to repay the delinquent amount.  Many Lenders offer different types of re-payment plans but most are with a 6 month to one year term. In some cases Lenders reduce the monthly payments temporarily and if a Home Owner is consistent, they can lock you in at a similar payment. Other Lenders raise your payment for 6 months, they add up the amount a Home Owner is behind and divide it out over a term and add it to the regular mortgage payment. There are many variables involved here and numerous options to consider. Please contact us with the name of your Mortgage Company. We have built working relationships with almost every Lender and we typically know what type of programs they offer.

How does this affect my Credit?

Let’s be serious here. Foreclosure Hurts your credit! Stay away from it if you can. Explore all of your options before it’s too late. A Bankruptcy also Hurts your credit for a number of years. From the way we understand this is that Short Sales can also hurt your credit, but it is the least damaging of all the options. A mortgage rolling though the delinquent stages can also hurt your credit. But there is HOPE! We suggest that you get in touch with a credit specialist who can assist you in removing those bad marks on your credit bureau and get you on the right path.

1.       Foreclosure and Bankruptcy are the Worst.

2.       Deed In Lieu can save you the Foreclosure and a few points on your credit.

3.       Short Sale is ultimately the Best Solution when considering the options.

Call Now for a FREE CONSULTATION 480-225-7188