Here is a quick list of the options currently available to homeowners in St. Lucie and Martin Counties who are unable to make their mortgage payments.
Option 1- Do Nothing. This is the worst thing you can do since foreclosure will negatively effect your credit by 200 – 300 points. Also the bank might apply a deficiency judgement against you for the difference of what was owed and what the house sold for at auction. According to experts, the bank has up to 20 years after the foreclosure to put liens on property and garnish wages for any money they might have lost. This option will also prevent you from getting financing for several years.
Option 2- Bring the Loan Current. Since the number one reason for foreclosure is job loss, this is usually not a viable option for most. Especially due to the large amount of past due payments, late fees, and attorney’s fees that can build up in just 3 months.
Option 3- Loan Modification.Modifying your loan has been a very publicized option for getting out of foreclosure.However, a good amount of homeowners are denied and don’t meet the criteria to qualify, and the ones that are approved usually result in higher monthly payments and more unfavorable terms for the homeowner.If you must go this route, it might prove more effective to hire an expert loan modification attorney to complete the paperwork and follow up after.
Option 4- Forbearance.This might be a good option if you are expecting a large sum of money to make up the past due payments.Usually a bank will delay or spread your payments for a certain amount of time until you are able to bring the loan current. Be careful to read the fine print as most of these programs will allow the bank to immediately take your house if you fall behind again.
Option 5 – Deed in Lieu of Foreclosure.This is an option where the owner deeds the property back to the bank. As a result, the bank will stop the foreclosure proceeding, and report to the credit bureaus accordingly. Unfortunately, this option doesn’t work if you have multiple liens on the house and the banks usually will not accept this as a payment for the debt. The bank is in the business to collect cash, not property.
Option 6- Bankruptcy. This might possibly be the worst thing a homeowner can do.Usually the bankruptcy will only delay a foreclosure; you might have to work out a payment plan for the house; and you will have both a bankruptcy AND foreclosure on your credit! Please seek legal cancel in this matter!
Option 7- Short Sale. This is usually the best option for homeowners who are upside down on their mortgage. A short sale occurs when the bank agrees to eliminate some of the mortgage balance so the owner can sell the house for the current market price, thus stopping the foreclosure and satisfying the debt. Since a huge number of homeowners owe more than the home is worth, this is usually the least expensive option. Make sure you have an expert helping you and be cautious of any up front fees for short sale help.
For Free Help Call:Chad Miller
Keller Williams Realty