Foreclosure Alternatives

Are you experiencing difficulty with your mortgage? "Underwater" and must sell? Confused with all the options? As a forty 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.


www.distressedhomeownerhelper.com

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.

 

 

Refinance ▼
  • 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

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

Lender Workout ▼
  • 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

Home Affordable Modification ▼
  • 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

FHA Pre-foreclosure Sales Program ▼
  • 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

Short Sale ▼
  • 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

Deed in Lieu of Foreclosure ▼
  • 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

Foreclosure ▼
  • 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