Distressed Properties

Having problems making mortgage payments?  You're not alone.  Follow these steps and attempt to avoid foreclosure of your home:

1.  Contact a knowledgeable real estate agent.  I am a Pre-foreclosure Certified agent and have had additional training to help you with these issues.

2.  Gather helpful documents.  These will be important regardless of the option you choose to follow:

• Checking and savings account statements
• Recent mortgage statements
• Last two paycheck stubs
• Last two years tax returns
• Letter of hardship

3.  Contact your lender, or lenders.  They will have ideas for loan modifications and other options to avoid foreclosure.  The U. S. Government, with the HAFA Program (Home Affordable Foreclosure Alternatives), has announced new procedures for short sales, simplyfing the process for the homeowner.

4.  Some options to consider:

• A short sale.  This gives a homeowner who owes more than the property is currently worth the opportunity to sell at market price, avoiding a foreclosure proceeding.
• A deed-in-lieu.  The owner returns the deed to the home to the lender, avoiding a foreclosure proceeding.
• A forbearance, or repayment plan.  The homeowner and lender agree to a plan to pay back missed mortgage payments.
• A mortgage modification.  Homeowner and mortgage company make an agreement that might involve a change in interest rate, principal balance, term of the loan or a combination of all of these.
• Rent the property.  Homeowner can choose to rent the property, and hopefully receive rental income sufficient to cover mortgage costs.
• A total mortgage refinance.  Homeowner negotiates for a different loan, the terms of which would be affordable for the homeowner.

I hope these ideas are helpful to you.  If you have questions or comments, please call or e-mail me.

   "Out working to meet your real estate needs."