| OPTIONS TO FORECLOSURE |
IS IT FOR ME?
Most likely and most significant criteria: |
HOW IT WORKS
Quick summary of actions to complete: |
BENEFITS
To homeowner: |
| SHORT SALE |
Need to show no equity in property and no other significant assets with equity |
Sell home at market value with $0 to Seller and reduced amount to lender(s) prior to foreclosure |
Less damaging to your credit rating than
Avoids public legal process
Avoids eviction |
| REFINANCE |
Recent and short term delinquency |
Find a loan program in which you can afford the payments and restructure the debt |
Much less damaging to your credit rating
Potential of complete and quick credit recovery |
| REPAYMENT PLAN |
Need to show ability to afford new payments |
Short-term repayment of past due amount due in addition to regular mortgage payment |
Bring loan current quickly and securely |
| SELL YOUR HOUSE |
Ability to meet payments and hold off foreclosure long enough to sell. |
You must have at least a small amount of equity or a small amount of cash to cover closing costs. |
Credit Protection! Ask Lender to pay in full but with more time. |
| DEED IN LIEU |
Most likely if only one loan on property; need lender permission. |
Deed property to lender in full satisfaction of the debt. |
Avoid public foreclosure
May be less damage to credit
Avoids eviction |
| LOAN MODIFICATION |
Similar to refinancing debt with same lender |
Long-term repayment of full amount due; need to show ability to afford new payments |
Keep property with affordable payments |
| BUYBACK PLANS - involves outside "investor" |
No other alternative and do not want to lose home |
Investor buys an "interest" in your home to "assist" you with repayment. |
Caution: Although there are reputable options of this type, most are scams with dire consequences. |
| BANKRUPTCY |
Strict filing criteria; need to consult reputable Bankruptcy Attorney |
Legal process in Bankruptcy Court of repayment of debts over tiem or discharge of all debts |
Addresses full financial distress situation and not just home loan |
