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Below are options available to you: 1. Sale: The owner sells the property, pays off his loan, and, depending on the equity, may net some cash out of the deal. The challenge, being to sell it quickly enough, often requiring a significant price reduction. Click here to list your property on our site. 2. Short Sale: The borrower makes an agreement with the consultant to sell a property for less than what is actually owed, subject to approval of any lien holders. Most mortgage companies will not let the owner receive any proceeds, but is better for maintaining good credit than foreclosure or bankruptcy. 3. Refinance: The owner may be able to refinance and get a new loan, but generally this is difficult because the owner has little equity and poor credit. The new loan likely will have higher payments than the old loan. This is often only considered when the owner needs more time to correct his/her situation. 4. Reinstatement of Loan: This option is paying the lender everything that is owed in one lump sum, inclusive of missed payments, any late fees associated with these payments, foreclosure fees, legal fees and the principal owed during the delinquency. 5. Repayment Plan: A written agreement between the lender(s) and the owner. These often require higher payments than the regular monthly mortgage amount for a period of time until the loan is brought current. 6. Loan Modification: A loan modification involves changing one or more terms of a mortgage. Modifications can include: changing the interest rate, moving from an adjustable rate note to a fixed rate, the loan term can be extended, and in some cases delinquent payments can be simply added to the mortgage balance. 7. Forbearance Agreement: The lender will allow you a period of time (3-6 months typically) of either low payments or no payments at all. 8. Deed-in-Lieu: A Deed in Lieu is an option in which a borrower voluntarily deeds the property back to the lender, in exchange for a release from all obligations under the mortgage. 9. Foreclosure: The mortgage company has the right to foreclose, or take back, the owner's property to satisfy the debt/mortgage. Very detrimental to the owner's credit, and the mortgage company has the right to file deficiency liens for any shortages. 10. Bankruptcy: Types vary depending on the situation. Remains on the owner's credit report for up to 10 years. It does provide the homeowner several months in which to bring payments current. |