 Don't be afraid if all else seems to fail. You have options. Eventhough the Modification Toolkit is your best option to getting out of the financial mess you are facing, there are alternatives that you should be aware of.
LOAN MODIFICATION
Loan Modification is generally the best option for the majority of our clients which is why we specialize in connecting you with best rates and the modification that right for you. Or team will help you in getting the right information out to various competing lenders in order to negotiate a fair and beneficial arrangement in your new loan terms. Our team uses proven techniques and strategies and has relationships with the nation's top lenders and organizations. Your interest rate could be lowered, your loan extended for lower payments, or your principal balance could be reduced. Please Click Here to contact one of our representatives and begin the steps towards your loan modification.
A SHORT SALE
Most banks consider the best solution to avoiding foreclosure to be the short sale. The bank agrees to lose some amount of money on the sale as long as they have a willing, approved buyer. Most banks will go for this because they will get more money back than with a foreclosure and get the matter finalized and off their books.
REPAYMENT PLAN/FORBEARANCE
Some mitigation specialist will consider applying for a payment plan from your lender if you are facing short term financial difficulties or are a few months behind in your mortgage payment. The option requires careful review of your financial situation and you must be able to prove that you can afford the new plan in order to secure your eligibility.
SPECIAL FORBEARANCE (FHA loans only) (Type I & II)
A specialist may apply for special forbearance if you are suffering from short term financial difficulties and your payments are 90 to 365 days behind. The is option is designed to provide more relief than the typical repayment plan. Often, if approved, the repayment is spread over 12 to 18 months. A Type II can be utilized in the situation of temporary unemployment, and one can prove some future employment.
PARTIAL CLAIM
(FHA mortgages only) (Some Freddie Mac Investor loans)
If your mortgage payment is between 120 and 365 days past due, you may qualify for a partial claim. Basically what happens is your past due amount is grouped into a second mortgage between you and the Department of House and Urban Development. The second mortgage becomes due once the original mortgage has been paid off. The partial claim is limited to a maximum of 12 months worth of payment.
VA LOAN MODIFICATION/REFUNDING
This option is available only for VA loans. Essentially, refunding occurs when your loan is purchased by the VA from your current lender. This refunding allows the VA a lot more flexibility in the terms of your loan and can often provide options your current lender wither couldn't or was unwilling to offer. Under the 38 USC 36.4318, the delinquency is added to your prior balance and the whole amount is reamortized. This new loan cannot be transferred without the approval of the VA Secretary.
DEED-IN-LIEU OF FORECLOSURE
We generally view this option as a last resort and is not to be taken lightly. If you have been facing long term financial difficulties and your property has been on the market at a fair price for a minimum of 90 days, you might be eligible for this option. You are required to complete a rigorous financial package and provide a copy of you current property listing to be considered for this option. You may not have any other outstanding claims or liens on your property excluding the mortgage. If you are approved for this option, you with be giving all rights to your property and the property will now be owned by an investor. In trade, your lender may waive all deficiency judgment rights.
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