To avoid a forced foreclosure sale, you have multiple options to consider. Some of these can allow you to keep your home and your credit rating intact, while others may involve the sale of your home to preserve your credit.
Here are some of the options you can consider:
- Special Forbearance – Your mortgage company may be able to arrange a repayment plan based on your financial situation. Your mortgage company may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently lost your job or your source of income or if you had an unexpected increase in living expenses. You must furnish information to your mortgage company to show that you would be able to meet the requirements of the new payment plan.
- Mortgage Modification – You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay).
- Partial Claim – Your mortgage company may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current. You may qualify if:
- Your loan is at least 4 months delinquent but no more than 12 months delinquent
- Your mortgage is not in foreclosure
- You are able to begin making full mortgage payments.
When your mortgage company files a Partial Claim, HUD will pay your mortgage company the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and will be due if you sell or leave your property, or when your mortgage matures.
- Selling Prior To Foreclosure – This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating. You may qualify if:
- The “as is” appraised value is at least 70% of the amount you owe and the sales price is 95% of the appraised value
- The loan is at least 2 months delinquent prior to the pre- foreclosure sale closing date
- You are able to sell your house within 3 to 5 months (depending on what your mortgage company agrees to).
An additional benefit to this option is the assistance you will receive with the Seller-paid closing costs.
- Deed-In-Lieu Of Foreclosure – As a last resort, you may be able to voluntarily “give back” your property to the mortgage company. This won’t save your house, but it will help your chances of getting another mortgage loan in the future. You can qualify if: you are in default and don’t qualify for any of the other options; your attempts at selling the house before foreclosure were unsuccessful; and you don’t have another mortgage in default.
- Call the INTEGRITY HOME PRESERVATION GROUP – If you are in SOUTHERN CALIFORNIA please cal us today. You’ll be connected to certified HUD counselors or certified foreclosure specialist. There are NEVER up front fee’s. We are in the business of keeping families in their homes! Call (619) 454-2937
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