If you are behind payment, please try following options first. 1. Seek advice from qualified finance, tax, and legal professionals. 3. Try refinancing As of 01/01/2010, Home owner who are current with their mortgage payments may be able to take advantage of today’s mortgage rate and keep their homes by refinancing with following qualification criteria. a. Owner Occupied b. Is a One to Four unit home c. Owned or backed by Fannie Mae or Freddie Mac e. Current on existing mortgage payments f. Has enough income to support new mortgage payments 4. Sell your home and bring cash to closing. 5. Call your lender and ask for lender workout. (Source from Nation Association of Realtor®) Lender will often work with distressed homeowners to help them keep their homes by reducing or rolling back interest rates, forgiving back payments, adding them to the loan amount, or possibly recasting the entire loan and wrapping all fees into a fixed-rate mortgage. Options from: a. Forbearance: Lender may let you make a partial payment, or skip payments, if you have a reasonable plan to repay or catch up. Talk to your lender regarding upcoming expected income such as tax return or bonus. b. Reinstatement: making a payment that covers all your late payment. c. Repayment plan: ask your lender if you can skip the pate payment but start making payment with addition until you caught up. d. Loan Modification: call you lender for this option to avoid foreclosure such as; a. Adding the missing amount to the loan b. Giving you more years to pay off the loan c. Switch from Adjustable-rate mortgage to Fixed-rate mortgage d. Adding Escrow into the monthly payment to avoid lump sum at the end of each year e. Sign over the property to the Lender in Exchange for Debt Forgiveness: This can hurt your credit but better than foreclosure |