Tuesday, January 3, 2012

Know Your Options to Foreclosure

Is life getting in the way? Do you find yourself unable to pay your mortgage on time or at all? Are you compelled to stick your head in the ground, well you’re not alone. Thousands of Americans are currently in the same fight to save their homes. It’s crucial to know that hiding from your problems will only worsen the reality of it.

If you are a struggling homeowner that is feeling overwhelmed, know that you have alternative options to foreclosure. Knowing and understanding all your options will help you make the best decision for your case and in the long run you and your family.

Route One: Short Sale
Option one involves the lender taking the less amount of money than what’s owed on their property once sold. Typically in short sales, lenders offer incentives to the sellers in effort to avoid the cost of foreclosure. These incentives are often called relocation packages which are meant to help the former homeowner leave their current residence.

There are programs and incentives for banks to do the short sale route, such as the Home Affordable Foreclosure Alternative (HAFA) program. Unfortunately, banks are taking months to finish these deals and in some cases your lender may refuse to follow through. Short sale is a good option as long as you are aware that they are not easy as they sound.

Route Two: Deed-in-Lieu
Option two is not mandatory for banks but the lender can accept the deed to your house in lieu of the mortgage payments, this is called Deed-in-Lieu or DIL, for short. The banks can deny your DIL request and foreclose if they choose. However, lenders often accept this option because it is a fastest, easiest and often times cheapest way to get you out of your house.

Route Three: Loan Modification
Option three has been infamous for being next to impossible to get, with a lieu of demands of document completion, initial evaluation process, and a slim chance of obtaining the actual modification; it could very well be the best option outside of foreclosure.

The positives in a loan modification are the lender agreeing to change your loans terms so that you as the borrower can continue to make payments on your mortgage. The loan changes to fit your financial specifications and is meant to be long-term if not a permanent solution. Whether that change means a lowered or fixed interest rate, lower monthly payments, and in rare instances the lender lowering the amount owed in the principles of forgiveness.

It’s vital to seek professional advice on your situation before making a decision, note that before qualifying for a loan modification you must already be behind on your loan. However, remember that is not advised to fall behind on your payments, and this report is for educational purposes only! It is un-ethical for anyone to advise you to do so.

So as you continue on your journey for keeping your home, you can see there are several options to consider before you go into foreclosure. Please consult the appropriate professionals before making your decision. Remember if one option isn’t for you, you have others to look into.
For loan modification help, call The Mortgage Law Group now: 888-591-6555

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