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Are you facing difficult times? Lost job? Adjustable rate loan? If you are having difficulty making your monthly payments, there are several options out there for you. They include loan modifications, short sales, and deeds in leiu of foreclosure just to name a few. Each process is unique and the best solution for your family is specific to your hardship. We help take the burden of the negotiations off of your shoulders and assist with that responsibility, so you can rest easier at night. Listed below are the alternatives and how each one is addressed.
Foreclosure and Short Sale Terms: Modification: A loan modification involves changing one or more terms of a mortgage. Modifications can be considered to reduce the interest rate of the mortgage, change the mortgage product (from an adjustable rate to a fixed rate, for example), extend the term of the mortgage or capitalize delinquent payments (add delinquent payments to the mortgage balance — only available in extreme hardship situations). Modifications are not easily granted and there must be strong, justifiable reasons for the request. Forbearance Agreement: The lender will allow you a period of time (3 to 6 months generally) during which to make either lower payments or no payments at all. Unless the loan term is extended, later payments generally will have to be higher than the original monthly mortgage payments until the loan is up-to-date again. Bankruptcy: While this may seem to be the most unpleasant option, it may allow you to save the property. A Chapter 13 bankruptcy may help you save your home from foreclosure if all other options have failed. You will need to consult a bankruptcy attorney. Legal advice is always recommended prior to filing.
Deed in Lieu of Foreclosure: This option, which must be done with the lender’s permission, means you deed your home back to the lender. This saves the lender money and time and you avoid having a foreclosure on your credit report. Short Sale: In this case we will petition the lender to allow us to sell the house at its current market value which is less than the loan balance. A lender may agree to a short sale because if the property is foreclosed upon, the lender will have to sell the house anyway. With a short sale, we save the lender time and foreclosure expenses by finding someone who wants to buy your house. Your choice of how to handle your delinquency may affect your credit report. A foreclosure will remain on your credit report for 7 years. If you choose to let your home go back to the lender through foreclosure, you should keep accurate records of your attempts to resolve the problem. Assuming the rest of your credit is good, you should be able to buy another home in 2 years. If you choose deed-in-lieu or short sale, negotiate with the lender to re-age your credit report to remove the derogatory information and bring your account current. Understand the Affects on Your Credit Rating 
Gennifer Mitchell, Realtor | cell: 916-316-1904 email: gennifermitchell@comcast.net | website: www.westrosevillenews.com Connect Realty | Focused in Placer and Sacramento Counties 
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