Four Options To Avoid Foreclosure
Many People facing foreclosure simply do nothing and hope for a miracle.
Don't fall into that trap!
Don't be in denial!
Time is your enemy!
If your house payments are more than 45 days behind then your lender has probably already started foreclosure proceedings.
As time passes thousands of dollars in penalties and legal fees are added to the balance you owe. And every single day extra is interest added!
Basically you have 4 options:
! - Deed in Lieu: This is the option where you decide to give your home back to the bank. This becomes complicated if not almost impossible if there is a second mortgage in place or if there are liens on the property. It is seen as a voluntary Foreclosure.
2 - Forbearance Agreement: This option is possible when you are behind in payments, it's basically taking the back payments and adding them to the back of the loan, very few homeowners are helped with this because basically nothing changes. They just have been given a short break.
3 - Loan modification: Is an option that is much talked about. It is the term that applies to the modification of the clauses of an existing loan, primarily in the setting of the mortgagor's incapacity to repay, which would help the mortgagor to repay it. The process of loan modifications involve an extension of the length of the term of the loan, changing the existing loan to a different one, a reduction in the interest rate of the loan or a combination of all these. The modification will take effect only after a discussion with the lender and the borrower.
In most cases loan modification happens to the ones with options ending. So loan modification will give him some breathing time to recover and redress his problems. There may be a variety of reasons for the borrower to take the loan modifications as he/she may lose his/her job, or if an unexpected illness or accident occurs and many other such things that drive a person to trouble. Though there may be some processes and fees for the modification of the loan, the borrower will be lot benefited from the positive aspects of it. The financier will also be happy as he is opening a new loan and the existing loan with no payments has been ended.
NOTE THIS: the lender may not be willing to consider the option of loan modification unless he is sure that the borrower can pay it back. If the lender is sure that the borrower is all set to join in a new firm, then he may not have any problem to give him a new loan. In all the cases, the lender will definitely check the past repayment history of the borrower to make sure that he has been making regular repayments. Otherwise, there will only be a feeble chance to get one.
4 - Short Sale: This is probably your best option in todays market. When you can demonstrate a hardship there are ways to negotiate with the lender to have them not only accept a lower amount as a pay off, but also you can agree that the lender forgives the debt and waives deficiency judgment.This is called a Short Sale.A short Sale will show up in your credit report as a settled debt, that's much better than a foreclosure. This will enable you to restore your credit much faster. Many people will be able to purchase a new home after 18 months.
An average Real Estate Agent will offer to short sale your house He will put a sign in your yard and advertise on MLS stipulating that your house is a short sale and no one will even look at it!
All he will do is lose time
Precious time, that the seller does not have because the lender has started foreclosure.
MonkeySold works with Investors who immediately, from the moment that you sign up for a short sale, will make an offer on your property . It is that contract for sale and purchase that triggers the lender to look at your case and to consider short sale.
So why wait?
Call us now at 1 407 566 9495 or toll free at 1 866 614 6993
Let us help you take that monkey of your back!
Don't fall into that trap!
Don't be in denial!
Time is your enemy!
If your house payments are more than 45 days behind then your lender has probably already started foreclosure proceedings.
As time passes thousands of dollars in penalties and legal fees are added to the balance you owe. And every single day extra is interest added!
Basically you have 4 options:
! - Deed in Lieu: This is the option where you decide to give your home back to the bank. This becomes complicated if not almost impossible if there is a second mortgage in place or if there are liens on the property. It is seen as a voluntary Foreclosure.
2 - Forbearance Agreement: This option is possible when you are behind in payments, it's basically taking the back payments and adding them to the back of the loan, very few homeowners are helped with this because basically nothing changes. They just have been given a short break.
3 - Loan modification: Is an option that is much talked about. It is the term that applies to the modification of the clauses of an existing loan, primarily in the setting of the mortgagor's incapacity to repay, which would help the mortgagor to repay it. The process of loan modifications involve an extension of the length of the term of the loan, changing the existing loan to a different one, a reduction in the interest rate of the loan or a combination of all these. The modification will take effect only after a discussion with the lender and the borrower.
In most cases loan modification happens to the ones with options ending. So loan modification will give him some breathing time to recover and redress his problems. There may be a variety of reasons for the borrower to take the loan modifications as he/she may lose his/her job, or if an unexpected illness or accident occurs and many other such things that drive a person to trouble. Though there may be some processes and fees for the modification of the loan, the borrower will be lot benefited from the positive aspects of it. The financier will also be happy as he is opening a new loan and the existing loan with no payments has been ended.
NOTE THIS: the lender may not be willing to consider the option of loan modification unless he is sure that the borrower can pay it back. If the lender is sure that the borrower is all set to join in a new firm, then he may not have any problem to give him a new loan. In all the cases, the lender will definitely check the past repayment history of the borrower to make sure that he has been making regular repayments. Otherwise, there will only be a feeble chance to get one.
4 - Short Sale: This is probably your best option in todays market. When you can demonstrate a hardship there are ways to negotiate with the lender to have them not only accept a lower amount as a pay off, but also you can agree that the lender forgives the debt and waives deficiency judgment.This is called a Short Sale.A short Sale will show up in your credit report as a settled debt, that's much better than a foreclosure. This will enable you to restore your credit much faster. Many people will be able to purchase a new home after 18 months.
An average Real Estate Agent will offer to short sale your house He will put a sign in your yard and advertise on MLS stipulating that your house is a short sale and no one will even look at it!
All he will do is lose time
Precious time, that the seller does not have because the lender has started foreclosure.
MonkeySold works with Investors who immediately, from the moment that you sign up for a short sale, will make an offer on your property . It is that contract for sale and purchase that triggers the lender to look at your case and to consider short sale.
So why wait?
Call us now at 1 407 566 9495 or toll free at 1 866 614 6993
Let us help you take that monkey of your back!