Are you facing foreclosure? You still have some options. Read below to find out more.

OPTION # 1: TRY to work with your lender

The Obama Administration’s Making Home Affordable Program includes opportunities to modify or refinance your mortgage to make your monthly payments more affordable.

Loan Modification:  Are you a homeowner who is struggling to make your payments? You may be eligible for a Home Affordable Loan Modification if you:

• Obtained your mortgage prior to January 1, 2009?

• Make a payment on your first mortgage (including principal, interest, taxes, insurance and homeowners association dues, if applicable) that is more than 31% of your gross income

• Live in your home as a primary residence?

• Owe less than $729,751 on your mortgage.

If you answered “yes” to the above questions, you may qualify for a Home Affordable Modification.

For more information on the Making Home Affordable program, visit:  www.makinghomeaffordable.gov

Refinance: Are you current on your mortgage,  but can not refinance because your home’s value has decreased?  You may be eligible for a Home Affordable Refinance.

• Do you own a one to four unit home?

• Are you current on your mortgage payments?

• Do you have a loan owned or guaranteed by Fannie Mae or Freddie Mac?

If you can answer “yes” to all three of the above questions, you may qualify for a refinance.

For more information on the Making Home Affordable program, visit:  www.makinghomeaffordable.gov

OPTION # 2    Sell Your Home

You may consider selling your home if you have enough equity to pay off your existing liens. However, you may not be able to do a regular sale if you owe more than what your home is worth.

OPTION # 3    Short Sale

If your home is worth less than what you owe on your mortgage, a short sale may be the best option for you. Instead of just walking away from the property and severely damaging your credit working with an experienced Realtor may make all the difference in the world.

What is a  Short Sale?

A Short Sale is a process through which your lender agrees to settle your loan for less than what is owed to them. They do this as an alternative to a foreclosure. Each lender has their own  process through which they decide whether or not to accept a short sale, and while there are many similarities, each has its own requirements for approval. As a third party mediator, we have a distinct advantage in negotiating with your lender.  Short Sales are a way for homeowners to avoid foreclosure on their homes and still be able to show the mortgage as paid on your credit report.

Not Sure if You Qualify For a Short Sale?

• Owe more than your house is worth?

• Having difficulty making your mortgage payments?

• Do you want to be able to get out from under your home and avoid future collections from your lender?

• Want to sell your house but there is not enough equity?

PLEASE NOTE:  Not everyone will be approved to do a real estate short sale. The more time we have the more success we have. It is best when you are in the beginning of foreclosure and not scheduled to be foreclosed on next month but we will be HONEST and TRUTHFUL if we just can not help you. We have a network of contacts that works to get you an approved Short Sale.

The strength of our experience, knowledge and relationships is invaluable. We help property owners avoid the lengthy and costly process of foreclosure and the stressful act of eviction that follows.

We will work directly with the lenders to show them why the short sale is be the best option for them. It is likely in this current real estate market and with enough time, the lender will approve the short sale.

You should not there is a downside to doing a short sale and need to understand what the tax implications may be.

Overall the positives can still out weigh the negatives of losing your home through a foreclosure.

The Mortgage Forgiveness Debt Relief Act of 2007, also known as Section 2 of H.R. 3648 was passed to eliminate the short sale tax consequence of having to pay the additional tax that would be due on the loss to the lender. Basically, any loss to the lender would be treated as ordinary income to you because what was a loss to the bank became a gain to the former home owner. Keep in mind that this will eliminate the federal tax but you still may owe money to the state. You will need to speak with your tax professional to know what the consequences will be for your current situation.

OPTION # 4    Deed in Lieu of Foreclosure

A deed in lieu of foreclosure is where you deed your property to the lender in exchange for being forgiven the entire amount of the mortgage. The lender then sells off the property in order to retrieve as much of the unpaid mortgage amount as they can. The advantages for the homeowner are to avoid foreclosure and not deal with a  short sale. This process allows the lender to sell the property much sooner without the lender having to spend additional time and money going through the foreclosure process.

OPTION # 5    Forebearance Agreements

With unemployment remaining high and many homeowners having difficulty finding employment opportunities that allow them to return to a regular mortgage payment schedule, programs like the Home Affordable Unemployment Program has been implemented as a way to offer homeowners without a job foreclosure prevention assistance.  During forbearance, your payments are temporarily postponed or reduced. This should only be considered if you truly believe you are only in a temporary set back and should be back on your feet soon.

The good news is you are not alone. Our team is available to have an initial consultation with you, to talk about your circumstances. It will be completely private and FREE. You need someone with the experience, and expertise of dealing with the lenders, the in-depth understanding of the ramifications of the process, and the long term commitment to seeing the process through.

WE LOOK FORWARD TO HELPING YOU!