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Options When Facing Foreclosure

06 Mar 2013 6:28 PM | Rogelio Rodriguez
 When a homeowner has trouble making their mortgage payments, knowing their options, expectations and  actions to take may make the difference between working out a favorable home retention agreement with their lender, successfully selling the house and getting out from under the loan or losing the house to foreclosure with pending liabilities. 
     What determines the final result? Ultimately, it comes down to the financial status of the borrower. Whether it means reinstating/curing the loan or submitting loan modification documents to the lender, the homeowner's monthly income must outlast the expenses based on  the current payment. The lender wants to see sustainable income and proper adjustments made to the expenses to be able to address retention options. This may include a repayment plan, forebearance, modification or the homeowner may resort to bankruptcy.
     If the hardship is job loss, divorce or a large cut in income and is too much to overcome, then exit strategies should be considered. The ultimate goal is not to let the house be foreclosed. A regular sale, a short sale or deed-in-lieu would be the alternatives to foreclosure.
 
     I decided to put together a flow chart with details about home retention options and exit strategies. Go to www.foreclosurechart.com to explore those options. 
    Given the current market conditions, selling is very realistic (see my January newsletter). To get a market analysis going, homeowners facing this situation can email or call/text me at 720-253-8513 to get the selling process going. 
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