Avoiding foreclosure is not out of the question for many homeowners………Recent market analysis estimates show that there are millions of foreclosures in the pipeline waiting to be processed by Mortgage Banks or Servicing Companies. This high number of pending foreclosures is shocking news, especially when federal and state governments are constantly implementing new programs to assist distressed homeowners from avoiding foreclosure. These programs are designed to assist homeowners with their mortgage crisis and steer them to an alternative financing option to help them avoid the disaster of having a foreclosure proceeding attached to their credit history. Either the mortgage companies are not doing an effective job of convincing distressed homeowners of the alternative mortgage solutions to avoid a foreclosure; or, maybe, the distressed homeowners are riding the wave of fortune by not paying their monthly payment in lieu of pocketing their monthly mortgage payments. And, risk taking a severe hit on their credit history.
Whatever the case may be…. most mortgage or servicing companies have specific guidelines in place to offer distressed homeowners options before initiating a foreclosure. The majority of banks would prefer that homeowners work out a financial agreement to stay in their homes to stabilize our local neighborhoods. In reality mortgage companies do not have a desire to be a landlord and are more than willing to work with distressed homeowners to acquire a loan modification, short sale or deed-in-lieu option. The process usually starts with a loan modification and will be escalated to a short sale or deed in-lieu if not approved for either of the two other alternatives. With a loan modification and short sale the distressed homeowner must show a hardship such as job loss, divorce, death of spouse, etc., before the bank will move your file along to a program that will work best for your financial situation. They will evaluate your financial status and hardship to determine how they may offer mortgage assistance under one of the many foreclosure prevention programs offered by federal and state governments.
If you are in a financially distressed situation or facing a hardship, the federal government offers mortgage alternatives such as the HAFA Short Sale to avoid foreclosure. Why risk the chance of destroying your credit for three to six years? You have worked to0 hard to lose it!…..Give us a call or your first mortgage lender to discuss your mortgage options!