FORECLOSURE DEFENSE – SAVE YOUR HOME!
These are the most common of the many different ways to save your home from foreclosure:
There are many ways that a loan modification can help you. Most importantly, foreclosure can be avoided and a home can be saved!!! A successful loan modification can change some or all of these:
- Reduction in interest rate
- Reduction in principal owed
- Arrears can be eliminated or placed at the end of the loan
- Reduction in monthly payment
To accomplish a loan modification a borrower first must be eligible. If a loan is too large, too delinquent, too old, too high or low of a percentage relative to gross income, or a rental, among other possible issues, the lender may not approve of a loan modification.
The documents required for a loan modification by a lender are also technical and numerous. They will need financial forms completed, tax returns, proof of income, bank statements, other financial documents, and various authorizations to evaluate a loan modification.
The interaction with a lender can be very frustrating for a borrower. Often times the lender loses documents and they need to be resubmitted. Evaluation can be occurring in the wrong department. The lender may not understand or misinterpret data, making you ineligible.
In short, achieving a loan modification is very difficult. My office is skilled at navigating all of these potential trouble areas and achieving resolutions so that you can keep your home. Call me!!
Sale or Short Sale
If you are willing to sell your home and you can put equity (the difference between fair market value and lessor loan amounts) dollars in your pocket this may be an option. If you do not have equity than a more complicated but possible sale called a “short sale” may be helpful where the lenders take less than they are owed and allow a sale to go through, thus avoiding a foreclosure sale and detrimental marks on your credit report. These are tricky – I can help.
If you can qualify a lender may give you a new loan, thus avoiding a foreclosure sale.
If a lender is unwilling to accept a loan modification there are Bankruptcy options that may be able to help save your home. A Chapter Seven filed before a foreclosure sale will stop the sale temporarily, and may give you enough time to save your home permanently. A Chapter Thirteen may allow you to keep your home permanently if you can make the regular payment again and get caught up by paying the arrears over three to five years.
The Bankruptcy options are complicated and require legal Bankruptcy expertise.
Please contact me if you think either a Bankruptcy or non-Bankruptcy option may help you.
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