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If you need foreclosure help, taking an active role early plays a major role in avoiding foreclosure. We’ll show you a few potential ways to stop foreclosure before it's too late.
Homeowners who have trouble making mortgage payments in a timely manner may be subject to seizure and the loss of title of their home. Regardless of the circumstances, it should and can often be avoided. If selling the home is your ONLY option because, you can't afford to pay your mortgage or your mortgage balance exceeds the current market price of your house, we can help you negotiate with the lender to do a short sale.
If you're unable to make your mortgage payment, it's absolutely critical that you call your lender now. Based on your situation, your lender may be able to provide the foreclosure help that you need.
Problems making your mortgage payment?
Here are a few options for individuals who can't make their mortgage payments or may have short-term financial problems and want to avoid foreclosure.
Forbearance
A temporary agreement that delays payments for a short period of time. Mortgage lenders will
only allow forbearance if you can prove you'll eventually acquire funds. Some common examples would be a tax refund or a bonus where you can show future earnings that can bring your mortgage up-to-date.
Reinstatement
If you're behind on your mortgage payments, a reinstatement can take place when you make a lump sum payment by a specified date, bringing your account back to current status. Lenders often combine reinstatement with forbearance.
Repayment Plan
If you're behind on your payments, the mortgage company may give you a fixed amount of time to catch up, by combining a portion of your past due amounts with your regular payments, allowing you to get current.
Loan Modification
The terms of your loan can be adjusted. Changing the amortization table or lowering your interest rate can make a big difference, reducing your monthly payment amount to something you can afford.
Federal Foreclosure Help
In response to the recent mortgage crisis, the president has announced a refinancing program called FHASecure. This new product offered through the Federal Housing Administration (FHA) is estimated to help some 500,000 homeowners prevent foreclosure. This is rather notable, as the FHA's previous policy would not allow for refinancing of borrowers in default. It does, however, come with restrictions, you can find more information on the FHASecure plan at http://www.fha.gov. Additional Government Sites related to housing issues. Severe Problems?
A few options for individuals dealing with severe financial circumstances or can no longer afford their mortgage payments and want to stop home foreclosure:
Short Sale
A deal between the homeowner and lender to sell the property for less than it's worth, with the
mortgage lender taking the loss.
Pre-foreclosure sale
A pre foreclosure sale is an effective way of stopping foreclosure, allowing a default homeowner to
satisfy his mortgage obligation by selling the property in question for an amount less than owed.
Deed-in-lieu of foreclosure
This last resort allows you to "give back" your property to the lender. This will leave a mark on your credit record, but it will stop foreclosure, which is much more severe.
Credit Counseling
A non-profit credit counseling agency may be able to help you prevent a real estate foreclosure. They'll often recommend (at a cost) what we've covered above, most of which you can do on your own or with the assistance of a HUD-approved counseling agency. You may find a HUD-approved housing counselor online or by calling (800) 569-4287 or TDD (800) 877-8339.
Taking a pro-active approach to home foreclosure avoidance can't be stressed enough. If you lose your home to foreclosure, the lender may come after you to recover money owed that may not have been recuperated in the property foreclosure sale. Having a house foreclosure on your credit report is detrimental and ranks right up there with bankruptcy. Remember that as negative as things may seem, your current financial problems are most likely temporary. Avoid foreclosure now so that when you get back on your feet, looming credit issues won’t restrict you.
If selling the home is your ONLY option because, you can't afford to pay the mortgage or your mortgage balance exceeds the current market price of your house, I can list you home in the MLS and negotiate with your lender to do a shortsale. In either case ... WE CAN HELP 630-632-0050. As a licensed Real Estate Broker I am bound to client confidentiality and MUST work in the best interest of all client. PLEASE IGNORE THIS LETTER IF IT DOES NOT APPLY TO YOU. Sincerely,
Kevin Rampersad, Broker
RE/MAX Professionals Select
(630) 632-0050
State of Illinois Real Estate Broker, License #475.115967
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