An Outline of lenders Options
Lenders are not required to make adjustments to your loan, but many will consider it as a viable option.
They will want to know if you have checked for other sources you might have (like sell a motorcycle, slashed your household budget, or if you have retirement or insurance funds to pull money from.)
They will also want to know if you have a hardship like insurmountable bills caused by unexpected medical bills, lost of job, death of income earner or a mortgage payment that increased beyond your current budget.
Lenders options are:
- Deed in Lieu of Foreclosure: Lender may accept the return of the title to your home, but beware that the lender may still sue for loss and report n uncollected funds due to loss to the IRS as table income to you. This option may have negative effects on your credit report.
- Claim Advance: If you have a Private mortgage lender, they will often provide a cash advance to bring your loan payments up to date. Sometimes this money is interest free and may not have to be repaid for years.
- Re-Amortization: In this option the payments you have missed are added to the balance of the loan, making your account current. Your debt will increase and your monthly payments will be higher unless the lender also agrees to extend the term of the loan.
- Allow a Short Sale: Considered by many as one of the best options available to avoid foreclosure, the short sale is an increasingly popular option. In this option the lender accepts less than what you owe on the property, relieving the homeowner of debt. Lenders are often willing to accept a short sale because it greatly reduces the expense and time involved in foreclosure proceedings. In most cases, a short sale does less damage to your credit than a foreclosure. Seek A qualified Realtor to get started in the short sale process.
Kurt And Helen Gearing
Sunshine Realty Of SWFL, INc.
234 Del Prado Blvd # 4
Cape Coral, FL 33909
Direct: 239.574.7836
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