Most homeowners with distressed loans often ignore their alternatives to foreclosure until its too late.
You have other options to avoid the foreclosure on your home. Don't make that mistake.
Knowledge and determination will give you the resolve you need to overcome the financial challenges you face.
What is Foreclosure? Foreclosure is a legal process for a mortgage lender to sell the property to satisfy a defaulting borrower's debt secured by the property.
Consider these alternatives to foreclosure:
1) Loan workout: If you are facing difficulties paying your mortgage, you should contact your lender (servicer) immediately and try to work a resolution to the hardship situation. Your lender with this program may temporarily reduce your payments to allow you to pay what's past due in monthly installments or provide other type of relief.
2) Loan modification: Contact your lender if you are facing hardship situation. This is the best solution if you want to keep your home. Your lender may agree to loan modification & to permanently change one or more loan terms.
A loan modification is restructuring the terms of your loan it may involve reduction in interest rate, or sometimes they differ the default balance, or change the term of the loan. This process might involve providing financial information and hardship situation.
3) Short sale: Another way to handle a distressed loan is by selling the property in short sale. Your lender may accept and agree to a short sale by accepting a loan pay-off of less than what's owed. If the property has equity then the homeowner will receive the remaining profit after the loan is satisfied and paid off. As for a foreclosure, will affect your credit, tax liability, personal liability, or other consequences. So the Short sale is better option for you.
I'm here to help in any of these situations. Reach out to me @ 818-414-6744