Theres no strategy in ruining your credit
Walking away from your mortgage can
be incredibly dangerous when considering your financial
In a strategic default,
homeowners simply choose to walk away from their mortgagesin
other words, move out and stop paying. This is often
done when a homeowner owes more on the home than its
worth or is underwater. Most of these homeowners
do not understand that walking away will expose them
to foreclosure, which carries credit issues, current
and future employment challenges, issues with security
clearance, and possible debt collections.
Due to current economic conditions,
one in four American homeowners have found themselves
underwater on their mortgages, and millions can no longer
afford to make their payments.
Fortunately, you have options to avoid
foreclosure and protect your financial future.
for Financial Stability
Generally considered one
of the most viable alternatives to foreclosure, short
sales allow homeowners to minimize financial damage and
move on from a burdensome, unaffordable mortgage. In many
cases, short sales allow borrowers to qualify for a new
mortgage in as little as two years, as opposed to five
years or more after a foreclosure.
Demystifying Short Sales
There are many myths about
how short sales work, including the rumors that they have
the same affect on your credit as foreclosure and are
impossible to complete. I can show you how thats
just not true, and how securing a loan for a home in the
future is much quicker after a short sale rather than
a foreclosure. New bank and government short sale programs
have also made the short sale process a more streamlined,
efficient process for all parties to the transaction.
at no cost to you
Lesser impact on
No challenges to
Retain some control
over the sale of your property (vs. public auction)
The ability to negotiate
away a deficiency judgment (collection of your mortgage
Shorter waiting periods
to get another mortgage
Alternatives to Foreclosure
A reinstatement is the simplest solution
for a foreclosure, but often the most difficult to achieve.
The homeowner simply pays the total amount past due
(including late fees) to the lender.
A mortgage modification
involves the reduction of one of the following: the interest
rate on the loan, the principal balance of the loan, the
term of the loan, or any combination of these.
Also known as a friendly foreclosure, a
deed-in-lieu allows the homeowner to return the property
to the lender rather than go through the foreclosure
A forbearance or repayment plan involves the homeowner
negotiating with the mortgage company to allow them
to repay back-payments over a period of time.
Rent the Property
This option does not require lender approval, but does
require the homeowners ability to rent the house
for enough money to cover the monthly mortgage payment.
If a member of the military experiences financial distress
due to deploymentand their debt was entered into
prior to deploymenthe or she may qualify for relief
under the Servicemembers Civil Relief Act.
Many believe bankruptcy is a foreclosure solution,
but this is only true in some states and situations.
Entering bankruptcy can be a risky and costly process.
Be sure to seek the advice of a qualified bankruptcy
attorney when pursuing this as an option.
Refinancing means you will acquire a new loan based
on your current credit standing. If you have already
missed mortgage payments, your credit score may make
it difficult to find a loan with cheaper payments.
Knowing that foreclosure can be avoided gives you the
ability to develop a realistic strategy to plan for
a future that is both financially stable and full of
Government and Lenders Want to Help
Since the beginning of the mortgage crisis, millions
of Americans have faced mortgage challenges. For the
last four years, lenders have faced an equally daunting
challenge of a managing the sheer number of borrowers
who werent able to pay their mortgages. Lenders
are not in the business of owning real estate, and are
motivated to find solutions that would benefit all parties
involved. In a short sale, even though lenders lose
a part of their investment, they recover more funds
than in a foreclosure. Homeowners are also able to keep
foreclosure off their credit reports.
Today, lenders are becoming
increasingly equipped to streamline the short sale process,
and have developed new processes to help facilitate
this foreclosure solution.
In addition, the governments
Home Affordable Foreclosure Alternatives (HAFA) program
offers cash incentives to lenders and homeowners to
successfully complete a short sale or deed-in-lieu.
The program requires the
waiver of a deficiency judgment, meaning the lender
must forgo its right to pursue any losses they incur
from the short sale.
the Green Light to Financial Stability
When you have options to avoid foreclosure, you will
soon realize that theres nothing strategic about
strategic default, or walking away. I can
help you form a real strategy based on your circumstances,
and help put you back on the road to financial stability.
The sooner you call me, the more time.
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