Foreclosure Alternatives

Are you experiencing difficulty with your mortgage? "Underwater" and must sell? Confused with all the options? If you are having difficulty with your mortgage you will want to attend my Free Distressed Homeowner Seminar. As a 33 year veteran of the Northern Virginia Real Estate Market I am fully conversant with all aspects of selling a home in difficult markets.

Options for Distressed Homeowners

I have been specially trained by the National Association of REALTORS to assist homeowners in preventing foreclosure and keeping their home! Please call me at 703-878-4866 or email me to arrange for a free private consultation.

Anytime homeowners are behind in their mortgage payments, they are considered in a "pre-foreclosure" status by the Lender. Depending on state law, the Lender must follow certain specified steps which, eventually can lead to foreclosure unless the situation is corrected.

 

 

  • Home affordable refinance program
  • Current on mortgage payments
  • Owner occupied
  • Fannie Mae or Freddie Mac loan
  • Ltv ratio between 80% - 105%
  • Sufficient income to support new payments
  • www.makinghomeaffordable.gov

  • Bring cash to closing
  • Withdraw from 401k, TSP, etc.
  • Avoid impact on credit file
  • Must consult with tax professional before using liquid assets

  • Forbearance – partial or skip payments
  • Reinstatement – pay all missed payments
  • Repayment Plan – pay additional amount monthly
  • Loan Modification:
    • Add all missed payments to loan & increase payment
    • Extend number of years to lower the payment
    • Lower interest rate – thus lower payment
    • Switch from ARM to fixed rate

  • Owner occupied
  • Unpaid balance $729,750 or less
  • Loan originated before 1/1/2009
  • Payment exceeds 31% owners gross monthly income
  • Owner has change in income or other financial hardship
  • Owner at risk of or in default
  • www.makinghomeaffordable.gov

  • Owner occupied
  • Must be 31 days delinquent at time of closing
  • Must substantiate:
    • Reduction in income
    • Increase in living expenses
    • Inability to pay mortgage
  • Home must be listed with a real estate agent

  • Owner owes more than home value
  • Owner unable or unwilling to bring money to closing
  • Owner has hardship that makes it impossible to keep the home
  • Home must be listed with a real estate agent
  • Lender willing to consider short sale – receive less than owed – rather than foreclose
  • Must have ratified contract
  • Buyer willing to wait 90-120 days

  • Owner trades property to lender for note cancellation
  • Will not work if there is a second mortgage
  • Lenders less likely to consider in a declining market

  • Owner should contact lender and discuss other options instead of foreclosure
  • Discuss options with an attorney and tax advisor
  • Two week notice before auction – should locate alternative housing
  • Credit score drops by 250-300 points
  • Ineligible for mortgage for 5 years
  • Security clearance may be revoked