Are you struggling to pay your monthly mortgage payments and avoid defaulting on your loan, and a potential foreclosure? The professionals at Adams & Associates, P.A. can help you with a Loan Modification.
Loan Modification may give you a fresh start, bringing your mortgage up to date after capitalizing any delinquent interest, escrow, fees, and other costs based on investor guidelines. This program adds the delinquent interest, taxes and insurance payments to the unpaid balance. If you qualify, you may be able to get help by extending the repayment of the past due amounts over the remaining term of your loan. Acting quickly should be your number one priority, as we will need to develop a plan, document the current financial situation, and contact your lender to begin negotiations on your behalf in order to attempt to stop the foreclosure and save your home.
In an effort to reduce the number of foreclosures and short sales on the market many lenders have created Loan Modification programs, in cooperation with the U.S. Government, that may be able to help you stay in your home.
Some of the benefits of a Loan Modification include:
1) A reduced or modified interest rate
2) Extending the term of the loan
3) Changing the monthly payment plan
By doing a Loan Modification, you may get a fresh start with your mortgage company. These programs are designed to bring your mortgage up to date, after funding delinquent payments, interest, escrow, fees and other costs associated with your mortgage. A Loan Modification may be able to finance these fees by attaching them to the remaining balance, allowing you to repay them over the term of your loan.
Time is of the essence and if you are struggling to pay your mortgage, you should consider a Loan Modification quickly before you begin to default on your loan and face a foreclosure situation. Once a loan becomes delinquent, it is more difficult to work with your lender and obtain a Loan Modification.
Other ways to prevent a foreclosure and help you to keep your home include:
If you have fallen into default on your home and you have received notice from your lender that it will pursue a foreclosure, a reinstatement allows you to bring the payments and past due amounts, including late fees, current. If you are able to bring the loan current once again, the lender may stop the foreclosure process with the courts.
Depending on your individual circumstances, your lender may arrange for a repayment plan. If you can prove a temporary financial hardship, your lender may change your payment terms for a specific period of time to allow you to bring the mortgage current.
Like a repayment plan, if you are facing a temporary monetary hardship due to a job loss, illness or natural disaster, your lender may exercise their right to suspend or reduce your payments for a specific period of time to allow you to stay in your home and bring your mortgage current.
Re-Set Modification / Short-Refi:
Under the federal government’s HAMP program (Home Affordable Modification Program), lenders can receive financial incentives for helping homeowners to stay in their home either with an interest rate modification, lowering the principle or changing the terms.This is an excellent alternative for homeowners who are upside down on their mortgage, or when the balance of the mortgage exceeds the home’s value.
Temporary Rate Reduction:
Working with your lender to temporarily reduce the interest rate may give you time to get back on your feet and bring your mortgage current, thus avoiding a foreclosure situation.
If you believe that you can no longer pay the mortgage, but want to avoid a foreclosure or short sale, a pre-foreclosure sale of the home may be an option for you. But you need to act quickly and aggressively to sell your home before foreclosure proceedings begin.
Deed-In-Lieu of Foreclosure:
With a Deed-in-Lieu of Foreclosure, the homeowner conveys title (or transfers) interest in the property back to the lien holder in an attempt to avoid a foreclosure situation.
Short Sales are becoming a very common transaction to allow homeowners to avoid a foreclosure. With a Short Sale, the lender agrees to sell your home for less than is owed as a way of forgiving the balance of the mortgage. While this is not the ideal situation because it will affect your credit rating for a period of time, it is a better alternative than a foreclosure.
Call us today to schedule a meeting for a free consultation so we can better assess your current situation and find a program that fits your needs. We will work together to assess your current financial situation and work with your lender to find the best alternative to protect your credit rating and avoid tax implications.