IN THIS TOUGH ECONOMIC ENVIRONMENT, BAD THINGS CAN HAPPEN TO GOOD PEOPLE.
WE CAN HELP
EXPERIENCING FINANCIAL HARDSHIP?
STRUGGLING TO MAKE MORTGAGE PAYMENTS?
PROPERTY WORTH LESS THAN YOU OWE?
NEED TO SELL/
FACING FORECLOSURE?
As a homeowner, falling behind on your mortgage payments and dealing with the possibility of foreclosure is an extremely stressful situation. If for whatever reason you are currently behind on your mortgage payments – or foresee that you will soon be unable to continue making your payments – be proactive; you do have options. Quite understandably, many distressed homeowners simply give up and give in to the foreclosure process, often without being fully aware of the options available to them.
Call704-658-3805 or submit your information on our online form below for a free and confidential consultation. We will answer your questions and, at the very least, point you in the right direction.
WHY US?
Our services are FREE to homeowners
Licensed and Bound by a Code of Ethics
Specialize in Distressed Transactions
Understand the lender’s language
High success rate
You avoid time and frustration of dealing with lender(s)
OPTIONS TO CONSIDER
MOVE OUT … and MOVE ON:
SELL AND BRING CASH TO CLOSING- Although many homeowners today may not have the necessary cash to cure deficiencies at closing, they may have available assets to liquidate (such as treasury bonds, certificates of deposit, stocks, money market accounts, etc.).
SHORT SALE – A short sale is a situation in which the seller (1) owes more money on the loan (and other liens on the property) than the sale of the property will likely produce on the market and (2) is unable or unwilling to bring money to the closing. In a short sale, the lender has not yet foreclosed on the property which provides a window of opportunity for the owner to sell the property in order to at least partially satisfy the amount owed to the lender.
DEED IN LIEU – A deed in lieu of foreclosure occurs when the borrower agrees to trade the property to the lender in exchange for cancellation of the note. Market conditions as sell as state-specific laws will influence whether and how a lender accepts a deed in lieu of foreclosure.
WALK AWAY, DO NOTHING – Homeowners can simply do nothing and let their home go to foreclosure. This is not a recommended course of action … or “non-action.”. Homeowners contemplating this are encouraged to seek the advice of an attorney and/or other qualified professional as this decision may lead to additional financial consequences.
IMPACT to HOMEOWNER’S CREDIT
SHORT SALEFORECLOSURE
How short sale is reported will affect credit score.
After short sale, lender can report as:
1. Paid in full – paid as agreed
2. Paid – settled
3. Paid - unrated
If the owner is current with other payments, a short sale may only lower score by 50 points.
Each case is unique, a key component in the affect on score is how many payments, if any, were missed.
Fannie Mae has announced a reduced mandatory waiting period to establish credit history to 2 years after completion of a Short Sale.
Reported as Foreclosure and remains a public record and on Credit History for 7 years
Can lower credit score by 200 points or more.
Fannie Mae mandatory waiting period to
establish credit history after a Foreclosure is
5-7 years.
STAYING IN YOUR HOME REFINANCE - Refinancing your home and paying off existing obligations may be an option if you are current with your mortgage payments and have some equity in the home. You may have already explored this option, but if not, we’d be glad to pass you along to our Gold Services Lender to see if you qualify.
FOREBEARANCE – Lenders may let you make a partial payment, or skip payments, if you can show that your financial difficulties were a temporary situation and you have a reasonable plan to catch up. A forbearance agreement is not a long-term solution for delinquent borrowers.
LOAN MODIFICATION – Your lender may agree to amend your mortgage to help you avoid foreclosure. The options include:
Adding all the missed payments to the loan amount and increasing the monthly payment to cover the larger loan.
Giving you more years to pay off the loan, lowering the interest rate, and/or forgiving part of the loan, to lower your monthly payment.
Switching you from an adjustable-rate mortgage to a fixed-rate mortgage, so you aren’t exposed to increases in your monthly payment.
Requiring amounts for taxes and insurance to be included with your monthly mortgage payment so you avoid big bills in addition to your mortgage.
For more information … Check out the Governments’ Website
TERMINOLOGY
Pre-Foreclosure- The period beginning with initial mortgage default up to when the distressed property is sold. The length of what is considered pre-foreclosure varies, depending on state laws.
NOD – Short for notice of default (NOD), this is an official notice from the lender that the borrower has defaulted on the mortgage. The NOD formally begins the foreclosure process. The NOD outlines the reinstatement period.
Reinstatement Period – The time stipulated in the NOD in which the borrower may reinstate the loan – making required payments and bringing one’s account into good standing.
Notice of sale – If, after receiving the notice of default, the borrower does not or is unable to reinstate the loan, a notice of sale is recorded. The notice of sale explains when and where the foreclosure sale will be held.
Foreclosure sale – Also known as the sheriff’s auction, the sheriff’s sale, or trustee’s sale, this is when the property is auctioned for sale to the highest bidder.
Redemption period – The time that gives a distressed owner has the right to redeem real estate after the foreclosure sale. Redemption typically requires that the owner pay the sales price, interest, and other costs.
REO – Acronym for real estate owned, REO is the status of the property when the foreclosure sale is not successful and when ownership of the property is transferred involuntarily to the lender.
Disclaimer: Clients are encouraged to seek advice from an attorney, a certified public accountant or other professional regarding the credit, legal and tax consequences of a Short Sale or other pre-foreclosure transaction.
