Dear Homeowner:

I hope you find this page helpful and informative.

There are options for homeowners who are in a financial bind and are facing a Foreclosure. Below are some possible solutions that might help you through this difficult time.

Loan Reinstatement: If you are behind on your house payment but confident you can catch up and be OK in the future, this could be a possible option for you. An example would be if you were out of work because of an illness or injury, but are now back to work and have an income again. We would negotiate with the bank or bank's to work out a payment plan. If they agree to the terms and you fulfill them, your loan can be reinstated and initial loan terms take effect.

Loan Modification: Loan Modification is a written agreement between you and your mortgage company that permanently (sometimes temporarily) changes one or more of the original terms of your note to make the payments more affordable. We can negotiate a substantially reduced payment, or even a fixed interest rate. This could be the option that provides the remedy you seek. The most common modifications include: Adding missed payments to the existing loan balance, making an adjustable-rate mortgage into a fixed-rate mortgage, extending the number of years you have to repay, and temporarily reducing your interest rate.

Forbearance: This is when we would negotiate with the bank. Sometimes with successful negotiating a bank will add the amount owed to them in in back payments. Also, banks will sometimes take a smaller portion up front and put the rest on the back of the loan. This strategy is designed to delay foreclosure as long as the terms are followed. This strategy is good for a short term solution, but generally not a long term solution.

If your financial situation does not allow you these type of options, there are other options you might consider.

Selling On An Assumption: This requires a qualified buyer to take over the existing debt if the lender allows. Beware of scam artists who offer to purchase your home on an assumption!

Selling/Short Sale: A Short Sale is selling your property for less then is owed with you and your lenders approval. With the market today many banks are realizing that it is in their best interest to do so. Lenders do not want to foreclose on Real Estate and hold it in there asset's. They would rather settle for a reasonable value. I have been negotiating with banks for almost 10 years and have a high success rate with Short Sales.
All expenses to sell come from the sale of the home and not the owners pocket. And since itīs a sale, it's a way to avoid foreclosure on your credit report as well.

Home Affordable Foreclosure Alternatives Program (HAFA)

To help homeowners who are unable to keep their homes under the Home Affordable Modification Program, the HAFA program may make a short sale or a deed-in-lieu of foreclosure a viable option to help them avoid foreclosure. The HAFA Program, which took effect April 5, 2010, provides servicer, seller and junior lien holder incentives for these transactions and is designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure.

Foreclosure: This is what we want to avoid! With a foreclosure you will typically be evicted after the foreclosure sale date and have a foreclosure on your credit report that is very damaging. Also, you may still be accountable for deficiencies and a 1099 tax liability.

Communications with the lender: Once we start to communicate with your lender, we negotiate to come up with the best options for you. Then we will discuss the options available with you. We will suggest a course of action.
We will do all the negotiations.
Please don't wait. The sooner we start negotiations with your lender the better.

Please contact me for a free consultation. All information is strictly confidential.
I look forward to helping you.

Edward (Ted) Peterson Broker, GRI, Certified Foreclosure Specialist
CARE Real Estate,