Ways to avoid FORECLOSURE!

WAYS THAT HOMEOWNERS
CAN AVOID FORECLOSURE

REINSTATEMENT:
o THE OWNER CAN PAY BACK ALL MISSED PAYMENTS, LATE FEES AND LEGAL FEES THAT ARE DUE UP TO THE DAY THE LOAN IS REINSTATED.

REPAYMENT PLAN:
o THE LENDER WILL ALLOW THE OWNER TO REPAY THE AMOUNT MISSED OR ADD THE MISSED PAYMENTS ON TO THE END OF THE AMORTIZATION OF THE LOAN.

RENT THE PROPERTY:
o MANY OWNERS CHOOSE TO RENT OUT THEIR HOME IN ORDER TO “COVER” THE MORTGAGE EACH MONTH. THIS IS A GREAT OPTION!

SELL THE PROPERTY:
o IF THE OWNER HAS ENOUGH EQUITY IN THE HOME, THEY CAN SELL IT AND PREVENT THE FORECLOSURE.

REFINANCE:
o MANY OWNERS HAVE SUFFICIENT EQUITY IN THEIR HOMES AND DECENT CREDIT IN ORDER TO REFINANCE.

MORTGAGE MODIFICATION:
o THIS PROCESS WILL LOWER THE INTEREST RATE ON THE EXISTING LOAN TO LOWER THE PAYMENTS.

DEED-IN-LIEU OF FORECLOSURE:
o THE HOMEOWNER ESSENTIALLY GIVES THE DEED BACK TO THE BANK.

SHORT SALE:
o THIS IS WHEN THE HOMEOWNER OWES MORE THAN WHAT THE HOME IS CURRENTLY WORTH AND ONE OF THE OTHER OPTIONS DOES NOT WORK.