Center for Foreclosure Alternatives

 

 
KNOW YOUR OPTIONS...
  • Reinstatement
    To reinstate a mortgage, the homeowner has to pay all the missed payments, late fees and legal fees that are due up to the date that the loan is reinstated.
     
  • Forbearance or Repayment Plan
    The lender allows the buyer to pay the missed amount over a period of time or the lender placees the missed payments on the end of the amortization of the loan.
     
  • Rent the Property
    In some cases, homeowners facing foreclosure will have payments low enough to allow them to rent their property to keep up their mortgage payments.
  • Sell the Property
    If sellers have equity in their property, they can sell it and prevent a foreclosure. 
     
  • Refinance
    If homeowners have sufficient equity and income and their credit has not been too badly damaged, they may be able to refinance. 
     
  • Mortgage Modification
    A loan modification is very similar to a lower interest refinance where the lender lowers the interest rate on the existing loan to lower the payments. 
     
  • Short-refi
    This process involves the refinance of a home with a reduction in the principal balance and often the interest rate as well.
  • Short Sale
    When homeowners owe more on a property than it is currently worth and one of the previous solutions does not apply to their situation, there is the option of pursuing a short sale.
     
  • Deed-in-lieu of Foreclosure
    A deed-in-lieu of foreclosure is sometimes referred to as a friendly foreclosure because the homeowner essentially gives the deed back to the bank.
     
  • Bankruptcy
    A bankruptcy may stop a foreclosure and allow homeowners to reorganize their debt and keep their property.
     
  • Servicemembers Civil Relief Act (SCRA)
    This law provides certain protection to military personnel who are in foreclosure in specific situations. 
Source: Distressed Property Institute, LLC - www.cdpe.com. Reprinted with permission.

 

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