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Options for distressed home owners.
I have been specially trained by the National Association of REALTORS to assist home owners in preventing foreclosure and keeping their home! Please call me at 703-878-4866 or email me to arrange for a free private consultation.
Anytime home owners are behind in their mortgage payments, they are considered in a "pre-foreclosure" status by the Lender. Depending on state law, the Lender must follow certain specified steps which, eventually can lead to foreclosure unless the situation is corrected.
These alternatives are:
- Home Affordable Refinance Program
- Current On Mortgage Payments
- Owner Occupied
- Fannie Mae Or Freddie Mac Loan
- Ltv Ratio Between 80% - 105%
- Sufficient Income To Support New Payments
- www.makinghomeaffordable.gov
- Bring Cash To Closing
- Withdraw From 401k, TSP Etc.
- Avoid Impact On Credit File
- Must Consult With Tax Professional Before Using Liquid Assets
- Forbearance – Partial Or Skip Payments
- Reinstatement – Pay All Missed Payments
- Repayment Plan – Pay Additional Amount Monthly
- Loan Modification:
- Add all missed payments to loan & increase payment
- Extend number of years to lower the payment
- Lower interest rate – thus lower payment
- Switch from ARM to fixed rate
- Owner Occupied
- Unpaid Balance $729,750 Or Less
- Loan Originated Before 1/1/2009
- Payment Exceeds 31% Owners Gross Monthly Income
- Owner Has Change In Income Or Other Financial Hardship
- Owner At Risk Of Or In Default
- www.makinghomeaffordable.gov
- Owner Occupied
- Must Be 31 Days Delinquent At Time Of Closing
- Must Substantiate:
- Reduction in income
- Increase in living expenses
- Inability to pay mortgage
- Home Must Be Listed With A Real Estate Agent
- Owner Owes More Than Home Value
- Owner Unable Or Unwilling To Bring Money To Closing
- Owner Has Hardship That Makes It Impossible To Keep The Home
- Home Must Be Listed With A Real Estate Agent
- Lender Willing To Consider Short Sale – Receive Less Than Owed – Rather Than Foreclose
- Must Have Ratified Contract
- Buyer Willing To Wait 90-120 Days
- Owner Trades Property To Lender For Note Cancellation
- Will Not Work If There Is A Second Mortgage
- Lenders Less Likely To Consider In A Declining Market
- Owner Should Contact Lender And Discuss Other Options Instead Of Foreclosure
- Discuss Options With An Attorney And Tax Advisor
- Two Week Notice Before Auction – Should Locate Alternative Housing
- Credit Score Drops By 250-300 Points
- Ineligible For Mortgage For 5 Years
- Security Clearance May Be Revoked
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