There are other options other than foreclosure and a short sale…
April 18th, 2008 Categories: Foreclosure and Short Sale Information
Short sale and foreclosure. Foreclosure and short sale. That is all we are hearing about these days in Surprise, AZ real 
estate. Seems to be an epidemic. Most people whom I have spoken with feel they have no choice but to foreclose on a home…. and you know sometimes they are right. People also feel that the only “other” option is a short sale. Sometimes that can be true, however, there are other options to research before going in the direction of a short sale or foreclosure.
Always call your mortgage company for an option if you run behind on your payments. Some companies are very proactive in creating a solution to help both parties. Here are a couple solutions you can inquire about:
1. Repayment plan - For those who have missed payments in the past for one reason or another (i.e job loss) but have gotten back on their feet and can start making payments again. The lender will distribute the delinquent payments over a period of time (10 -12 months) so you can catch up.
2. Forbearance Plan - This plan works for people who have come across a recent financial hardship (i.e job loss, medical bills, seasonal work) but want to stay in home and can foreshadow better times in the future. You can work out a plan (forbearance) to have the mortgage company temporarily lower your payments considerably or sometimes even stall them altogether. They can do this for 3-4 months. And they usually add the missed payments to the balance on the end of the loan.
3. Loan Modification- This plan is permanent. Let’s say you had a loan and it adjusted after 24 months and now you owe $600 more a month and cannot afford it. Call your mortgage company! Tell them that you have no problems affording the original rate but cannot afford the new adjusted rate. Most companies will “modify” the loan to its original rate or terms to keep you in the home. Make sure you get a long term fix.
These options are solutions to some problems I am seeing out there in the “real world”. They do not work for everyone. You have to want to stay in your home. The bank wants you in there too… call them and work it out.
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[…] foreclosureadvice wrote an interesting post today onHere’s a quick excerptThere are other options other than foreclosure and a short sale… April 18th, 2008 Categories: Foreclosure and Short Sale Information Short sale and foreclosure. Foreclosure and short sale. That is all we are hearing about these days in Surprise, AZ real estate. Seems to be an epidemic. Most people whom I have spoken with feel they have no choice but to foreclose on a home…. and you know sometimes they are right. People also feel that the only “other” option is a short sale. Sometimes th […]
Pingback by There are other options other than foreclosure and a short sale… — April 18, 2008 #
Three very good suggestions. Thank you.
Aloha,
Keahi
Comment by Keahi Pelayo — May 16, 2008 #