If you have fallen behind on your mortgage, you will receive information – and lots of not so subtle suggestions – from many people who want to take advantage of your temporary misfortune. They will tell you that time is your enemy and that you must act immediately to save your credit. That will normally be followed by a proposal to solve your problem by selling or deeding your property to them. Don't do it! Don’t do anything until you understand your options. Below are some of your options:
Sell Your Property
Sell the property at fair market value and put your equity in your bank account – where it belongs. We can help here and we will be sure you get your equity.
Do A Short Sale
If you owe more than your home is worth, you can look at negotiating a discounted payoff with your mortgage company. We can negotiate with your mortgage company on your behalf to get approved for a Short Sale. We have done hundreds of these and here’s the best part:The lender nearly always pays all the sales costs including title and escrow fees, commissions and most repairs.
Refinance
Refinance the property and pay off existing loans. We have loan sources for this type of loan, but the loans are very expensive and they normally require that the borrower have significant equity in the property. Nevertheless, refinancing is an option for some.
Negotiate a Loan Modification
Negotiate a loan modification with your mortgage company. For those borrowers who experienced a very temporary event that caused them to fall behind on their mortgage, a modification with the lender is a good option. In most cases, the mortgage company is going to look for two things when considering a loan modification. First, why the loan became delinquent. It helps greatly if the problem was something beyond the control of the borrower – serious illness or injury, temporary disability or a one-time disruption in income. Second, that the borrower’s financial difficulties have been corrected. The mortgage company wants to know that the borrower is now on a solid footing and can be counted upon to make regular loan payments as agreed. The new payment will probably include some amount to go to the delinquent amount.
Do Nothing
Of course, you could just do nothing. Many go this route because the situation seems overwhelming. It is a heavy burden, but the consequences of a foreclosure are serious. Let’s at least consider potential solutions that help you avoid foreclosure.
