Avoiding foreclosure is the goal of most homeowners with distressed and underwater mortgages and all options should be weighed before making a decision to short sale or go through foreclosure. It is important to understand the California Foreclosure Time Line. Your lender, and the type of mortgage loan you have, will determine your eligibility for different types of alternatives to foreclosure. Ask for our informative report on Alternatives to Avoiding Foreclosure. The Alternatives to Avoid Foreclosure of Your Home are the following: - Repayment Plan: This usually involves establishing a schedule with your lender to make a full regular monthly payment, plus a little extra each month, to repay the delinquent amount over a specified period of time.
- Special Forbearance Plan: This option may provide for a temporary reduction or suspension of payments that will be increased at a later point to repay the delinquent amount over a specified period of time.
- Mortgage Modification: This option may allow you to refinance the debt and / or extend the term of your existing mortgage loan.
If you Cannot Retain Ownership of the Home: - Sell The Home: If you have equity you may be able to sell your property for more than what is due on the mortgage loan. If there is not sufficient equity perhaps a short sale might be the answer.
- Assumption: With this option, you would sign over the property to another person. That person would then take title of your home, and take over making the payments but they would have to qualify.
- Pre-Foreclosure Sale and Short Sale: This option may allow you to sell your property for an amount less than what is necessary to pay off your mortgage loan.
- Deed In Lieu Of Foreclosure: This option may allow you to voluntarily "give back" the property to your lender without further damaging your credit.
Managing the foreclosure process is stressful and complicated. FACS- and CHS-designated REALTORS® have undergone specialized training essential to evaluate all potential foreclosure alternatives. FACS and CHS designated REALTORS® are trained in foreclosure avoidance and how to negotiate the short sale process competently and ethically. The FACS and CHS designations mean you are working with the most up to date REALTORS® and information available. Ask for our special 5 Steps to Avoid Foreclosure report .
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