It can be extremely stressful to fall behind on mortgage payments. You feel a wide range of emotions, including fear and disappointment, but also anger. Our team of experienced agents understands this and are here to help guide you in what your options are and help you make a good financial decision. 

STOP! Make sure you understand the options before you do anything. Do not give up! Remember that you need to understand what foreclosure means; why you need early help so you can avoid it. Foreclosure can have a large impact on your credit score, as well as emotional trauma for you and a loss of equity.

Some homeowners who face foreclosure might feel like they have no alternative, but a lot of the time they do but they do not know it. Educating yourself is the best way to learn of these options and make a good decision. The faster you can educate yourself, the faster you can get out of the situation you are in. 

Here are some options available to you that you might want to consider:



1. Home Affordable Modification Program (HAMP) or Standard Loan Modification

For people behind on their mortgage payments, in the foreclosure process, or those who are current on payments but about to default, it is possible to lower the interest rate and modify your loan. This can take a while and is a difficult process. You need to be able to advocate for yourself while going through this process. You also need to be able to qualify for this program. Here are the requirements:

• A loan being owned by Freddie Mac, Fannie Mae or a participating lender,
• The mortgage having been taken out on or before January 1, 2009,
• Living in the property with it being your primary residence
• Not being able to qualify for the federal Home Affordable Refinance Program (HARP)
• Being behind on the mortgage, or being unable to afford the current payment 
  with documented proof of financial hardship
• Spending more than 31% of pre-tax income on your mortgage payment

2. Home Affordable Foreclosure Alternatives (HAFA) or a Traditional Short Sale

HAFA has two options for getting help with your mortgage – a short sale or a Deed-in-Lieu (DIL). In a short sale, you can sell off your home for an amount lower than what is owed on the mortgage. This is possible for those homeowners who cannot afford their payments, cannot get a trial mortgage modification under the Making Home Affordable Program, do not successfully finish the trial period for the modification, miss a minimum of two consecutive payments during the modification period or ask for a short sale or deed-in-lieu of foreclosure.
In order to sell your home in a short sale, you need to list it with a real estate agent who understands short sales. A lot of agents will say they are experts, and might even have accreditations, but they do not usually understand the complications of this sale at all and will thus jeopardize the sale. 


3. Deed-in-Lieu (DIL) of Foreclosure
It is possible that the lender will consider a deed-in-lieu of foreclosure if the borrower has made a good effort to sell the property but has been unsuccessfully. In this case, the lender gets the ownership of the property.


There are multiple options available, if you are considering a loan modification so that you avoid losing your home, or if you do not want to keep your home any longer and you are considering a short sale, please contact our team of experts. 

Call us or email us TODAY! The sooner you become proactive in this stressful situation, the sooner we can help you find a solution.