Save Your Home
If you are facing foreclosure, there are some methods you can use to stop the foreclosure process. Some of these methods will enable you to keep your home, like a loan workout, while other will provide an exit strategy.
Forbearance: This is commonly used once a Notice Of Default has been filed. The lender will allow you to delay or reduce your monthly payments for a pre-determined length of time, with the understanding that you will bring your account current within the pre-determined time frame.
Special Forbearance: An option when you have an FHA loan and you have suffered a short term financial hardship and your loan is 90 days delinquent. This offers a longer repayment plan-up to 24 months.
Partial Claim: FHA mortgages only, this is a one time payment from the FHA Insurance Fund in the form of a promissory note with HUD for the delinquent amount. A lien for that amount will be placed on the property, and the loan will be brought current immediately. The note will be interest fee and no payments will be due until the home is sold or refinanced.
Loan Modification: The lender agrees to re-negotiate the terms of the original note to a more affordable plan so you can stay in the home and continue making payments. This may include a reduction in interest rate, term modification or reduction in principle, or a combination.
Deed in lieu: This is also known as a voluntary reconveyance, where you sign a deed conveying all interest in the real property to the lender. You lose your home, but are able to avoid all the stress and expense of foreclosure proceedings.
Bail out loan: A new loan whereby the defaulted mortgage is paid off. Ususally a high interest, high cost temporary solution to avoid foreclosure.
Chapter 13 Bankruptcy: A legal process that allows a debtor to enter into a court approved repayment plan
Before you make a decision affecting your home, family and financial future be sure to weigh all of your options carefully. Take time to become an educated and informed homeowner. There are many resources available for distressed homeowners, a very good source of information is The Complete Loan Modification Guide. This Guide will provide you with the information you need to learn about the various options available to homeowners facing default and foreclosure.
In addition to giving general information about retention options and exit strategies, you will learn about
Home Edition Loan Modification Kit with Customer Assist
the Loan Modification process and if you may qualify with your lender for a Loan Modification. You will learn the 7 Steps to a Successful Loan Modification, as well as insider tips and negotiating secrets. The Complete Loan Modification Guide also provides all the necessary loan modification forms, along with detailed instructions on how to complete them. This easy to read and easy to follow Guide will give you the information you need to decide how best to help your family and save your home.
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