You Have Options

60% of Homeowners underwater never talk to anyone qualified to help them!

Homeowners have many options available to them when they are experiencing difficulties in paying their mortgage.  Loan refinancing can offer a lower interest rate than the current one on the loan, resulting in a reduced payment.  Loan modification can reduce the interest rate, increase the loan term( for example, take a 30 year mortgage to a 40 year mortgage), or even a reduction in principle owed.   

Loan modifications are usually offered on a trial basis, i.e. the homeowner must make the new payments, without fail, for three consecutive months, before the new terms are permanent.  If these options are unsuccessful for the homeowner, there are other things that can be accomplished.               

What are HAMP, HAFA, and Short Sales?

The Home Affordable Modification Program is designed to help as many as 3 to 4 million financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use.

Borrower eligibility is based on meeting specific criteria including: 1) borrower is delinquent on their mortgage or faces imminent risk of default 2) property is occupied as borrower's primary residence 3) mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.

The Home Affordable Foreclosure Alternatives Program provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program.   Eligible borrowers may receive moving assistance up to $3,000, release of liability on the first mortgage, and the ability to buy another home in as little as two years.

A short sale occurs when a home is sold for less than is owed the mortgage bank(s).  More and more, banks are accepting short sales as it costs them far less than to foreclose on the property.  Even if a borrower does not qualify for HAFA or HAMP, they can still short sell their home.

There are several benefits to performing a short sale for the consumer, versus letting your home fall into foreclosure.  A short sale affects your credit score differently than a foreclosure- usually consumers that currently own a home would like to own another, and a short sale enables you to buy again in a much shorter time frame than a foreclosure.  This will also enable a borrower to qualify for additional loans, i.e. car loans, education loans, etc. 

I recognize that needing to sell your home is different than choosing to sell your home.  I understand that this is an emotional time for my clients, and I completely empathize with them.  More people than not are facing the same decisions- our neighbors, our friends, our family members are faced with these uncomfortable decisions.  It is my goal to make the process of short selling your home as painless as possible, enabling all of us to move on to the next phase in our lives, with dignity and financial freedom!

Call me today for a confidential analysis of your real estate position in our market.  I help my clients achieve peace of mind and financial stability through real estate.