Below are some of the foreclosure prevention options that your lender may offer you.
First and foremost contact AskForRed.com as early in the process as possible. We have experience in working with sellers at short sale and helping with loan modifications. Red Hilton has over 22 years in the industry.For the last 18 years she has been either working with or for local NON PROFITS that specialize in helping low to moderate income families including: First Time Home Buyers, Down Payment Assistance,Financial Literacy, mortgage modification and Short Sales. Count on Red and her experience to guide you through your situation.
If you need or want to speak to an Attorney first, contact Tom Flaherty of Bacon Flaherty, LLC. www.bfboston.com. Tell him you were referred by AskForRed.com and Red Hilton.
If your problem is temporary:CONTACT RED
• Reinstatement: If you are behind in your payments lenders are generally willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option.
• Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. You may qualify for this if you have recently experienced a loss of income or some other emergency situation, but can show you will be able to make payments.
• Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up.
If it appears that your situation is long-term and you cannot afford your mortgage payments and cannot bring your account current: CONTACT RED
• Mortgage modification: If you can make payments on your loan, but don’t have enough money to bring your account current or you can’t afford your current payment, you should try to get your lender to change the terms of your original loan to make the payments more affordable. Your loan could be permanently changed in one or more of the following ways:
• Short Sale: If you can no longer afford your home and the lender will not agree to modify your mortgage you may need to sell your house. If you cannot sell it for the full amount of the money you owe on your mortgage, you can request that the lender accept less than the amount owed. You have to get the lender to agree to this – you cannot just sell the house and expect the lender to accept whatever money you get for the house. CONTACT RED
• Deed In Lieu of Foreclosure: If you are unable to sell your house and cannot afford the mortgage you can try to “give back” your house to the lender in exchange for the lender forgiving your debt. This will not save your house, but it is less damaging to your credit rating than foreclosure. The lender must agree to this. CONTACT RED
Information to have ready when you call your lender – Typically, lenders need the following in order to help you: a) your loan account number; b) a brief explanation of your circumstances; c) recent income documents (e.g., pay stubs or benefit statements from social security, disability, unemployment, retirement or public assistance); and d) a list of household expenses.
What happens next – Expect to have more than 1 phone conversation with your lender. Typically, your lender will mail you a “loan workout” package. This package contains information, forms, and instructions. Your counselor will guide you as you fill out the forms. If you want to be considered for assistance, you must complete the forms and return them to your lender quickly. The completed package will be reviewed before the lender talks about a solution with you.
Do not ignore mail from your lender – If you do not initiate contact with your lender, your lender will try to contact you by mail and phone soon after you stop making payments. It is very important that you respond to the mail and phone calls offering help. If your lender does not hear from you it is likely they will start legal action leading to foreclosure. This will substantially increase the cost of bringing your loan current.
Beware of Scam Artists – Predatory lenders often target people in financial distress. They try to panic you into high cost mortgages, making financial problems worse and increase your risk of losing your home. They may try to get you to sign your house over to them in return for paying your mortgage. Do not give money to anyone saying they can modify your mortgage or help you pay your bills. Do not sign the deed to your house over to anyone without. If an offer sounds too good to be true it is. If you receive a notice or letter in the mail that you don’t understand, call AskForRed.com and we can help you understand if it is something that to which you should respond.
The property listing data and information set forth herein were provided to MLS Property Information Network, Inc. from third party sources, including sellers, lessors and public records, and were compiled by MLS Property Information Network, Inc. The property listing data and information are for the personal, non-commercial use of consumers having a good faith interest in purchasing or leasing listed properties of the type displayed to them and may not be used for any purpose other than to identify prospective properties which such consumers may have a good faith interest in purchasing or leasing. MLS Property Information Network, Inc. and its subscribers disclaim any and all representations and warranties as to the accuracy of the property listing data and information set forth herein.