How to avoid foreclosure

How to avoid foreclosure

Here are some ways to cope when you have fallen behind on your mortgage payment.If you are a Homeowners who cannot afford their monthly payments or you are not allowed to  refinance into government-backed loans

Once you miss a payment, your lender likely reports that to the credit bureaus. And with every missed payment, your credit score goes down.  Plus, you'll start getting hit with late fees. After 90 to 150 days in most cases, your lender may file a notice of default with a local courthouse. You'll probably get a letter saying the foreclosure process will start, unless you become current on your payments. If you don't become current, you may have anywhere from 2-3 months to a year before the house is put on the auction.

Try to get a loan modification before you even miss a payment.

This is probably the best of the options out there, if you can get it. This is basically a change in loan terms. A modification will lower your monthly mortgage payment or let you skip a few payments. Bottom line here is that the term of your loan will be extended. To request a modification, call your lender and ask to be transferred to the loan modification department. Make sure you have some recent pay stubs, current or prior year W-2 forms, bank statements, property tax bills and insurance bills. If possible, obtain appraisal information for your home. although the process can be frustrating. It could take weeks.It's up to you to be proactive, persistent and aggressive,

 If you owe a lot more on your home that it's worth, you may be able to get the lender to accept less than you owe on it by negotiating a short sale.

Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth. If you're facing foreclosure and can't qualify for any assistance programs, a short sale is an option you may want to consider

Basically you sell the house for what you can get and the lender agrees to accept it. In some cases the deficit will be forgiven, but in other cases you may have to sign an unsecured loan for the amount. Negotiating a short sale isn't always easy, Lenders are not willing to accept these losses gracefully.You generally have to write a hardship letter, indicating why you can't make the mortgage payments. The bank usually controls the negotiations and you don't have much say in the process.Keep in mind  that  can take 4-5 months from the first time you submit your package. You can also do a deed-in-lieu transaction. With a Deed-in-Lieu transaction, you hand over your deed to the house to your lender. In return you are released from your mortgage. But lenders cannot be forced to accept a deed. In fact, you may have to have tried to do a short sale and failed. So, having your lender accept a deed-in-lieu can be challenging. We've talked about some alternatives to foreclosure. But sometimes, it's unavoidable. Having a sheriff's sale on your credit report is a black mark you'll want to escape if possible. If this is inevitable, keep in mind that you can still repair your credit. Typically foreclosures are on your record for seven years. And don't forget that you're not alone. There are millions of families that are going through exactly what you are going through.

The good news is that there are many incentives for short selling your home for example Bank of America announced on May 15, 2012 that will be giving cash incentive to homeowners between $2,500 and up to $30,000 for relocation assistance as a limited time offer. HomeOwners in distressed late on their mortgage payments or already delinquent could benefit from this incentive, home owners need to agree to sell their property in a short sale to claim this cash incentive.

Although the downside to short sale has been that they take a long time to be approved, Starting June 15, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, will require both agencies to give short-sale buyers a final decision within 60 days.

Fannie and Freddie must also respond to initial requests for a short sale within 30 days of receiving the buyer’s submission.

CONTACT US, YOUR LOCAL REALTOR, WHO CAN ASSIST YOU IN AVOIDING FORECLOSURE , WE WILL WORK WITH YOU THRU THE SHORT SALE PROCESS IT IS FREE TO YOU BECAUSE THE BANK IS THE ONE THAT WILL PAY OUR FEE. LET US HELP!