Real - Stop Foreclosures
Help and information
OrlandoFloridaMortgages.com Mortgage Professionals understand that life changing events happen. As many as 12 million homeowners are teetering on the brink of foreclosure. So the loss of a job, a serious illness or divorce can be financially devastating. You may become 4, 5 even 6 payments behind on your mortgage. You may have already tried to refinance or make payment arrangements without success. Dealing with creditors and worrying about a foreclosure is very stressful. We offer real, honest, and helpful advise when it comes time to deal with the possibility of a foreclosure. Almost everyone has some options before, during and after a foreclosure. The sooner you act the more options you have. As the foreclosure date gets closer, your options become less and less, until by the foreclosure date only payment in full or filing bankruptcy remain. You must act fast to protect your investment and your credit. Many homeowners will ignore the lender until it is too late. You should contact your lender as soon as you have a problem, they may be willing to work with you before your account becomes seriously delinquent.
Typical lender options:
- Short pay or Short refinance - The lender is willing to allow you or an investor to refinance the mortgage for less than the amount owed on the account including past due payments and legal fees. You need to be aware that the short pay will still show up on your credit report and even though the lender may allow the sell, you could be liable for the short pay amount.
- Modify the existing mortgage - The lender agrees to change the terms of the loan. Most often the changes are temporary. Reducing the interest rate, principal portions of payments, or extending the amortization in an effort to reduce overall payment obligations.
- Repayment plan - The debtor pays a portion of the arrearage and agrees to pay the rest in addition to the regular payment over a period of months.
- Deed in lieu of foreclosure - Here the debtor gives the property back to the creditor usually in exchange for their forgiveness of potential deficiencies. Even if you give the house back and the bank sells it at foreclosure auction you may still owe the deficiency.
- Short Sale - The property sells to a third party and the lender accepts this price as full settlement of the debt if it is negotiated that way. Beware of the bank attempting to take a short sale and ask for a deficiency too.
- Forbearance - In exchange for money or the debtor taking some other action (perhaps listing the property with a realtor or making repairs) the lender agrees to temporarily cease legal actions.
Mortgage Refinancing
Late payments on your mortage are worse than late payments on accounts like credit cards and personal loans to Mortgage lenders, and they will make a more negative impact on your credit score. You may no longer qualify for a conventional loan but there are still private lenders that may be willing to refinance your mortgage.
Sell and Lease back
There are private lenders and investors who will purchase the properry and lease it back to you with an option to buy it back in the future. This allows you to stay in the property, avoid the foreclosure, and give you time to overcome immediate financial difficulties.
Sell and Cash out
Selling your property is always a last resort, but there are times when it may be better to eliminate or reduce your current debt and move on. Rather than have a Bankruptcy or Foreclosure on your credit report for 7 to 10 years, you may be able to save your credit and receive cash at the sale. We have private investors who will make cash purchases immediately.
