Foreclosure Help 101

Foreclosure Options

Are you behind on your payment, but want to keep your home? Or, you have not yet missed a mortgage payment, but are worried you will fall behind? Now is the time to save your home. You may be eligible to modify your existing mortgage with a loan modification agreement to make your payments more affordable. There are programs such as HAMP which are specifically designed to help homeowners with recent or past financial hardships.

What is a Loan Modification?

A Loan Modification, the most popular program; is the change of an existing home loan down to an affordable level in response to a borrower’s long-term inability to repay the loan by the lender. Typically a Loan Modification involves the reduction of the interest rate, principal balance, or extension of the length of the loan term; or the combination of the three (3). You possibly qualify if you have recently recovered form a hardship and can afford the new payment amount offered. Most lenders can work with home owners, even if they have a foreclosure date or bad credit.

Loan Modification Qualifications:

– You do not make enough money to pay your current payment

– You lost your job

– You are on unemployment

– Current/Behind

What are the benefits?

– Remove delinquency status with your lender

– Reduced monthly mortgage payment

– Fresh start

– Stay in your home and avoid foreclosure

Principal Balance Reduction

A Principal Balance Reduction is a process that a loan modification attorney assists a home owner in when negotiating the principal balance that is owed down; to reflect the current market value of the property. Typically to lower your monthly mortgage payment the interest rate of the loan is reduced to the current market rates.

What is a Mortgage Forbearance Agreement?

Your bank may offer a solution to repay your past due payments and avoid foreclosure with a Mortgage Forbearance Agreement, depending on your situation. The forbearance agreement is made between the delinquent borrow and the mortgage lender. In which the lender agrees not to take legal action and foreclose on a mortgage, and the delinquent borrower agrees to a new mortgage repayment plan. A Mortgage Forbearance Agreement is a temporary solution designed for delinquent borrowers who have had unseen financial problems. Typically the Mortgage Forbearance Agreement allows a borrower a minimum of four (4) months and a maximum of twelve (12) monthly mortgage payments.

How To Get Foreclosure Help

We recommend that you research any government programs that you may qualify for. If you are not confident in applying for the correct government program for yourself or don’t have the time or energy to deal with your lender; give us a call at (855) 901-2224. We help people on a daily basis find and enroll in the right program for their situation!