Has your lender filed a Notice Of Default? Don't wait till you receive a Notice Of Trustee Sale, learn your Pre-Foreclosure options from a Certified Pre-foreclosure Specialist now!
Have you missed 3 or more mortgage payments due to a reduction in pay, large medical bills, loss of job or your ARM Loan resetting to a higher payment? Has all the information you've heard in the media confused you? Are you stressed out because your lender is not responding to your loan modification request or your lender is only offering you a Forebearance which increases your principle balance? Do you want honest answers about how to avoid foreclosure?
Your not alone, millions of homeowners all across America are facing foreclosure. These homeowners, like you will be making tough decisions throughout the next couple years.
Don't be mislead, as a homeowner you only have 9 options to choose from when trying to avoid foreclosure. A true financial hardship and missed mortgage payments in most cases is required to qualify for President Obama's Making Homes Affordable Program. Financial hardships limit the use of these 9 options. Here are the only options available for homeowners to utilize to avoid foreclosure.
Nine options when facing Foreclosure
1. Do Nothing - If a homeowner does nothing, they will lose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option.
1. Do Nothing - If a homeowner does nothing, they will lose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option.
2. Payoff/Refinance - Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home. This option may change your non-recourse loan to a recourse loan, enabling the lender to pursue a deficiency judgment. http://banking.about.com/od/loans/a/recourseloan.htm
3. Reinstatement - Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
4. Loan Modification - Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.
5. Forbearance - Lender may be able to arrange a repayment plan based on the homeowner's financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.
6. Partial Claim - A loan from the lender for a 2nd loan to include back payments, costs and fees.
7. Deed in Lieu of Foreclosure - Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened.
8. Bankruptcy - This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney.
--Chapter 7 (Liquidation) To completely settle personal debt.
--Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.
--Chapter 11 (Business Reorganization) A business debt solution.
9. Sale - If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale. On the other hand, a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property's value.
Jennifer & Gary Ricco of Keller Williams VIP Properties have sought out the best training in the Real Estate Industry to provide homeowners with honest answeres about avoiding foreclosure. Both my wife and I have earned the Certified Distressed Property Expert designation http://www.cdpenow.com/ and the Pre-Foreclosure Specialists Certification http://www.partnerfirst.org/ .
Don't gamble with your financial future, Jennifer and Gary Ricco are Realtors who are specializing in this Pre-Foreclosure Real Estate Market. Whats critical to understand about avoiding foreclosure is which option will minimize your financial loss and limit the damage to your credit history. Avoiding Foreclosure will have negative ramifications, Jennifer and I have to verify your financial hardship in order to see what programs you qualify for and what options apply to you. Whether you agree with your lender to do a forebearance or choose a short sale their are ramifications that homeowners have to understand and consider when utilizing these options.
If your about to miss payments or are in default, contact Jennifer and Gary Ricco to set up a consultation, its free, educational and will provide solutions for the difficult decisions you have to make. We extend our services to the Santa Clarita Valley, San Fernando Valley and Ventura County.
FOR 24 HOUR RECORDED INFORMATION ON PRE-FORECLOSURE OPTIONS CALL 1(800)805-2409 ext 2002
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