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.

Here are some of your options...

Sell Your Property:

• If you do have equity remaining in your property, sell it 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.

A Short Sale:

• If you don't have equity in your property and 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 negotiate daily on these and here’s the best part:

The lender nearly always pays all of the sales costs including title and escrow fees, commissions and delinquent taxes / HOA dues.

 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. With the tightening of the credit market and declining home values, it has become very difficult for individuals to find financing. Nevertheless, refinancing is an option for a select few.  

Negotiate a Forbearance Agreement:

•  Negotiate a Forbearance Agreement with your mortgage company.

For those borrowers who experienced a very temporary event that caused them to fall behind on their mortgage, a Forbearance Agreement with the lender is a good option. In most cases, the mortgage company is going to look for two things when considering a forbearance agreement.

First, why the loan became delinquent in the first place. 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.

Call or send us an email. We can make things easier than they might seem, and will assist you through the solution that makes the most sense for YOU.