There are many ads that make bankruptcy seem like the obvious solution; but they may be other options to consider, prior to making such a decision. We can help.
Options to Avoid Foreclosure and Keep your home.
We recommend that you work directly with your bank first and research any government programs that you may qualify for and apply to the best one that fits your situation. If you are not confident or do not have the time to work with your bank or apply to the correct government program yourself, give us a call at (404) 964-4907. We help people every day get enrolled in the right program!
Thankfully there are options available to you if you are looking to stay in your home.
The most popular program, a Loan Modification is a change to an existing loan to a more affordable level by a lender in response to a borrower's long-term inability to repay it. Loan modifications typically involve a reduction in the principal balance, interest rate or an extension of the length of the term of the loan, or a combination of the three. You may qualify if you have recovered from a hardship and can afford the new payment amount. Most lenders can work with home owners, even if they have poor credit and have a foreclosure date since they do not want your home.
Depending on your situation, your bank may offer you a solution to repay your missed payments and avoid foreclosure with a Mortgage Forbearance Agreement. This agreement is made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on their payments. A Mortgage Forbearance Agreement is a temporary solution for delinquent borrowers designed for borrowers who have short-term financial problems caused by an unforeseen hardship such as health problems or unemployment. Usually Mortgage Forbearance Agreements allow a minimum of 4 months to postpone monthly mortgage payments, all the way up to 12 monthly payments at the maximum.
A Principal Reduction is a process whereby your loan modification attorney assists in negotiating down the total amount of the principal that you owe on the loan to reflect current value of the property. Usually the interest rate is reduced to current market rates and your monthly mortgage payment is lower.
However a Principal Reduction is difficult because the bank or lender is not making as much profit, and may even avoid mentioning principal reduction as an option. Just a $200 a month reduction equals tens of thousands of dollars less profit for the bank over the life of the mortgage.
OPTIONS TO AVOID FORECLOSURE WHILE NOT KEEPING YOUR HOME
Perhaps you are in a home that is under water, in which case you owe more for the home than it is worth. Or you no longer have the income you once had and can no longer afford your home. Whatever the reason, if you want to walk away from your home; but don’t want the bad credit and embarrassment that comes along with a foreclosure, we have several options to help you as well.
In a short Sale, the lender agrees to accept less than the amount owed to pay off a loan now rather than taking the property back by foreclosure and trying to sell it later. Lenders agree to a short sale often times because they believe it will net them more money than going forward with a lengthy and costly foreclosure process. During a short sale you get to stay in your home until a suitable buyer is located and they close on the home. This avoids the expense of a foreclosure attorney and having your home vacant, which could result in vandalism.
Cash for Keys
If foreclosure is imminent, and you are considering walking away, let us help arrange a “Cash for Keys” offer for you. In this agreement you will actually get paid to sign your home over to an investor who will pay you to vacate the home in a timely fashion. The money you receive is intended to pay for your relocation costs, such as movers, your deposits and rent elsewhere. Often times this works out to be a great option for homeowner who simply need a new start. If you are ready to give up, give us a call today at (404) 964- 4907 and we can help.