The Obama administration plans to announce Thursday new guidelines designed to help struggling homeowners with Federal Housing Administration-insured mortgages.
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Step by step details on how to deal with your foreclosure.
Avoiding Foreclosure
We are dedicated to helping you avoid foreclosure through one of two techniques: loan modification or short sale. If you are upside down on your mortgage (you owe more than your home is worth), we can help you avoid the foreclosure process and get you started on the right path.
You have several options available to avoid foreclosure. If you have received a notice of default or are behind in your mortgage payments, we at Blue & Gold Realty can help you avoid the foreclosure process on your home by negotiating the following options with your lender:
Loan Restructure
We can negotiate with your lender to get your loan in good standing again. There are many options available to use to get a restructure approved like a separate payment plan for your delinquencies or even adding the delinquency to the end of your loan. You may qualify for a restructure especially if you have recently experienced a reduction in income or an increase in living expenses. Sometimes we can even get your monthly payment lowered!
Short-Sale
We can help you sell your home before the foreclosure sale. We may be able to negotiate a short sale with your lender on your behalf. In this case the lender would take less than you owe on the loan and avoid a costly foreclosure process. If the short-sale is unsuccessful, we can arrange for you to simply give the property back to the lender and walk away not owing anything. This process is not as damaging to your credit as a foreclosure.
You do have options to avoid the foreclosure that you can do on your own, without the assistance of a real estate agent;
Reinstatement - Reinstatement of your loan by paying your lender all the past due amounts to bring the mortgage current. Although this option is probably not feasible in most distressed situations.
Mortgage Refinance - Refinance the debt or extend the term of your mortgage. However, this is a difficult option if you owe more then your property is worth. However, if your receiving a notice of default (NOD) then you most likely do not have the financial ability to refinance or do a loan reinstatement. Only as a last resort should you consider Bankruptcy or allowing the bank to Foreclose.
Bankruptcy - You may qualify for Chapter 7 Debt Elimination or Chapter 13 Reorganization. Bankruptcy stays on your credit for 10 years.
Foreclosure - This is the most damaging to your credit other than bankruptcy. The lender will be able to take your home and your equity. This will stay on your credit seven years.
Many homeowners are benefiting from our help in these hard times. We have successfully negotiated a number of the options discussed above and have helped our clients avoid foreclosure.
This is a list of documents that are generally required for a loan resolution package, however this list various depending on each unique situation. Here is a list of some documents that will be requested, in order to process your loan resolution package:
Hardship Letter - A letter that explains your unique situation as to why your cannot continue making your payments. We can help you with writing this letter.
Financial Statement - This shows where your money goes and how much is left over after paying your bills. We will provide the approperate form, which will itemize your finanances and show your hardship.
Bank Statements - Last two-months bank statements, checking, savings, etc.
Mortgage Statements - For all loans associated with the property.
Most recent mortgage statement & account number
Pay stubs - Last two months worth of pay stubs (or proof of unemployment)
Tax Returns - Last two years of tax returns including W2's
Once all necessary documents are obtained, we start the negotiation process with your financial institution.
The further behind you become, the harder it will be to reinstate your loan and the more likely you will lose your home. Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.
Open and respond to mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later, mail may include important notices of pending legal action. Your failure to open the mail will not be an excuse in foreclosure proceedings.
Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and time frames in California, Click Here.
Prioritize your spending.
After health care, keeping your home should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses - cable TV, memberships and entertainment that you can eliminate.
Contact a Real Estate company that can handle loss mitigation.
If, for some unforeseen circumstance, you are unable to make you mortgage payment and are in jeopardy of losing your home, contact a reputable loss mitigation company to help you by negotiating with your lender to resolve your situation. This is where Blue & Gold Realty can help.
