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Facing Foreclosure? Get Your Short Sale Information Kit Today!
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If you are facing foreclosure, you may have more options that you think.
These options include:
- Refinance
- Selling and bring cash to closing
- Loan modification
- Short Sale
- Deed in lieu of foreclosure (not common in California)
- Foreclosure
- Do nothing and walk away
To learn more about these options, you should visit the US Department of Housing and Urban Development website
Prior to pursuing any of these options, you should consult tax and accounting professionals so that you can make an informed decision. If you do not currently have tax and legal advisors, you may want to visit the US Foreclosure Network website.
If you cannot afford an advisor, be sure to visit the US Department of Housing and Urban Development website to search for a free HUD counselor. | |
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Homeowners struggling to stay current with mortgage payments who experience a change in income or other financial hardships may seek loan modification via Home Affordable Modification Program, a component of the Making Home Affordable Program. Home Affordable Modification is a voluntary program with participation from major mortgage servicers. To be eligable, the following criteria must be met:
- Home must be owner occupied
- One to four unit property
- Unpaid principle balance that is equal to or less than $729,750 for one unit properties with higher limits for 2,3, and 4 unit properties.
- Loan originated on or before January 1, 2009
- Payments must exceed 31% of borrower's gross income
- Financial hardship must exist
- Homeowner must be at risk of imminent default or in default
After determining a borrower's eligibility, a servicer will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower's total pretax monthly income:
- First, reduce the interest rate to as low as 2%,
- Next, if necessary, extend the loan term to 40 years,
- Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.
Should a loan modification not work for you, you may still be eligable for the Home Affordable Foreclosure Alternatives Program. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or deed-in-lieu. | | |
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Want to know more? - just fill out the form below and we'll send you a free short sale information kit.
Ready to list your house for sale and need help with a short sale?
Call Trent today: 760-576-5780 |
Please note: If you have not already watched the video on this page, please do so, as it is a very important part of the short sales process. | | |
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