OPTIONS TO STAY IN HOME

Refinance:

Is a New loan with new interest rates, terms and monthly payments. Even if your home value has decreased you may be able to refinance your loan through the governments Home Affordable Refinance Program. It allows you to make your payment more affordable by lowering your interest rate or adjusting the terms of your loan. It creates no negative activity on your credit report and it allows you to stay in your home and prevent foreclosure.

Repayment Plan:

Is a agreement between your mortgage company and you that allows you to pay the past due amount over a specified period of time.Amount is added to your monthly mortgage payment and brings your current. Is less damaging to your credit score than a foreclosure. Allows you to stay in your home and prevent foreclosure.

Forbearance:

Is an offer by your mortgage company to temporarily reduce or suspend your monthly mortgage payments for a specified period of time. It gives you time to improve your financial situation and get back on your feet. Less damaging to your credit score than a foreclosure and allows you to stay in your home.

Modification:

An agreement between your mortgage company and you to change the original terms of your mortgage such as your payment amount, length of loan, interest rate and etc. It may reduce your monthly mortgage payment to an affordable amount. Less damaging to your credit score than a foreclosure and allows you to stay in your home.

Deed-for-Lease:

A program that allows you to temporarily lease your home. You first transfer the ownership of your home to the mortgage company (Deed-Lieu of Foreclosure) in exchange for a release from your mortgage payments. You thereafter can rent the property back at an affordable rate and remain in the home as a tenant. This program resolves your delinquency, avoids foreclosure and stay in your home.

Military Forbearance:

An agreement between you and your mortgage company to temporarily reduce or suspend your monthly mortgage payments during the forbearance period. With a Military forbearance it can continue for the entire term of your active duty and for another three months after you are released.

OPTIONS TO LEAVE YOUR HOME

While it may be difficult to think about leaving your home and making this decision, at times it may be the best option if/when other solutions or no longer viable to keep you in your home. Do not just walk away, there are better options. The most important thing is to avoid foreclosure. The time to take action is NOW!

Short Sale:

Is the sale of the home for less than the balance that is owed to the mortgage company. It allows you to eliminate or reduce your mortgage debt, start repairing your credit sooner than if you went through a foreclosure. Relocation assistance may be available to assist you in moving if you decide to go through a short sale. Maybe eligible to get a Fannie Mae mortgage to purchase a home in as little as 2 years after the short sale of your home.

HAFA:

A program designed to help homeowners whom can no longer afford their mortgage. Allows you to avoid foreclosure and eliminate your mortgage debt. Financial assistance may be available to assist you in relocation.

Deed-in-Lieu:

You transfer the ownership of your property to the owner of your mortgage. Allows you to eliminate or reduce your mortgage debt and avoid a foreclosure.

Foreclosure:

Is a legal process where your mortgage company repossesses the property. Occurs once the homeowner has failed to make monthly payments and has defaulted or violated the terms of the mortgage loan. You lose your home and any equity that you may have established. It damages your credit impacting your ability to get new housing, credit and even potential employment. After the property has been foreclosed you may still owe deficiency balances.