What are the alternatives to Foreclosures?

More than ever before there are alternatives to foreclosure.  Here are a few of the best options available:

1.  Short Refi
This is a process of refinancing your home for less than the amount that you owe.  The lender forgives some of your debt and you refinance the remaining mortgage.

2.  Short Sale
This has become a more popular option for many homeowners who are upside down in their homes.  With this option you sell your home for less than what is owed on the mortgage.  The advantages of this option include the lender paying all fees (including Real Estate Commission), forgiveness of the deficiency of the sale (no judgment for the difference of sales price and what is owed), and under a new government program called HAFA you may actually receive a $3000.00 check for relocation assistance.

3.  Loan Modification
This is a process of modifying the terms of your existing mortgage.  This can include but is not limited to interest rate, the length of the loan,  waiving of fees, or reducing the amount owed on the principal.

4.  Repayment Plans
These are plans which allow the borrower to get caught up on missed payments.  This option is used most often when there was a temporary issue that has now been corrected.  Most lenders are willing to accept these plans, expect to have to pay up to 50% of the back payments upfront.

5.  Deed In Lieu of Foreclosure
In this case the homeowner deeds the home back to the back instead of going through the foreclosure process.  It is important to ensure that the lender forgives the debt so you do not end up with a deficiency judgment and still owe the lender.

There are other options, but these are the most popular today.  To find out what option might work best for you fill out our quick and easy form and pre-qualify today and we will help you determine your next step.

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