Are you facing foreclosure? Don’t give up. You have options with your bank that you may not even know about. Before we begin, lets get a few things straight. The bank does not want to own your home or condo. Banks have never been in the real estate business. When you are in a position that you may not be able to pay your mortgage; call them. They have customer service reps waiting to assist you and help you find the right product until you get back on your feet. This goes for those of you that have missed payments as well.
DO NOT just walk away without talking to the bank. There are a lot of stories that we hear where borrowers will leave their keys on the kitchen counter or simply mail their keys back to the bank as well (termed-jingle mail). What most of these borrowers didn’t realize is that banks are willing to work with you. They see home preservation as a much better situation than the foreclosure process.
I have had multiple conversations just this week with friends and even family that are trying to understand which way to turn. With so many people in this situation even the non-profits created to help borrowers are overwhelmed. I’m happy to talk with any of you about your situation. Until then, read below.
Here are the most popular options that banks are providing for struggling homeowners:
Re-payment plan: If you have fallen behind, you may qualify for making payments over that will ultimately cure the balance owed.
Temporary Payment Reduction: Most banks will offer this plan that may allow partial payments for up to six months.
Loan Modification: This programs may modify your payment by reducing your rate, re-amortizing your loan or reducing the amount owed.
Foreclosure prevention includes:
Short Sales: A short sale allows a borrower to sell their home at an approved price that is less than the balance owed on the loan secured by the property sold.
Deed in Lieu: Allows you to voluntarily transfer legal ownership of your property to the lender when you are unable to sell your home at current market value.