Taylor1 Inc. – Trusted specialists in Real Estate Management
Taylor1 Inc - your trusted experts in the short sale process
There are more and more families finding themselves in the frightening situation of facing foreclosure on their mortgage, often due to circumstances out of their control. Whatever equity they had in their property has long since been swallowed up, due to the constant decrease in value of their property. They are now totally over leveraged, confused, under pressure and often don’t know who or where to turn to next.
Their mortgage bank may be sympathetic, but have their own interests to protect. There may be some that suggest that they consider the option of a pre-foreclosure sale or a short sale as it is known. The questions arise, what is a short sale and is it better for me than foreclosure.
Team Taylor has prepared a list of FAQ’s on the subject, gained from many years of experience in the real estate industry. We hope that these questions and the answers to them will help to clear the picture of the pros and cons of both options.
Forbearances
definition: A lender's postponement of foreclosure in order to give the borrower time and an opportunity to make up for overdue payments.
To qualify for this option the borrower must be at least 90 days past due yet not more than 365 days past due. The owner must also occupy the property as the primary residence. The borrower must be able to afford regular monthly mortgage payments. The amount past due, referred to as the arrears, will be divided up over a number of months determined by the lender to create a new mortgage payment. Forbearance is most applicable to homeowners who are experiencing a temporary hardship.
Loan Modification
definition: A modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.
Loan modifications can be negotiated in several areas. A loan can be modified through extending the amortization period, reducing the interest rate(s) of the loan, or reducing the principle amount of what’s owed. Even a combination of the 3 types can be utilized.
Deed in Lieu
definition: Deed in lieu of foreclosure is a way to get out of a home loan. A borrower who cannot pay his mortgage may attempt a deed in lieu of foreclosure transaction. Instead of going through the foreclosure process, the borrower hands his keys over to the lender.
Borrowers like the deed in lieu approach because they can get free from their mortgage quickly. In addition, a deed in lieu of foreclosure transaction may be less damaging to the borrower's credit.
Lenders will accept a deed in lieu of foreclosure because accepting the deed may be easier and faster than going through the foreclosure process. In addition, they take control of the home immediately -- instead of allowing the borrower to live there without paying during the foreclosure process. However, the bank still may suffer losses, and they have to sell the house themselves.
There is no guarantee that your bank will accept a deed in lieu of foreclosure.
Hope Now
HOPE NOW is an alliance between counselors, servicers, investors, and other mortgage market participants. This alliance will maximize outreach efforts to homeowners in distress to help them stay in their homes and will create a unified, coordinated plan to reach and help as many homeowners as possible. The members of this alliance recognize that by working together, they will be more effective than by working independently.
Loan Mortgage Review
definition: Our Attorneys will review your loan documents for violations of federal and state loan laws. These are called "Actionable Violations." We can use thes violations as leverage in our negotiations.
Contact us now at Taylor1 to arrange a free consultation.
Let us help you!
Taylor1 Inc – Your real estate management specialists in:
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Pre-foreclosure advice | |
Successful Short Sales | |
Helping over-leveraged home owners | ||
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One on One Support | |
Bailout Assistance | |
Forbearances | ||
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Loan Modification | |
Negotiating with lenders | |
Experienced Short Sale Experts |
