If your property is currently in foreclosure, or about to be put in to foreclosure, you do have options. In the state of Florida, the foreclosure process takes 4 months. You have time to work out a solution.
You should call your lender and see what programs they have available for you. If you would like a free consultation on how to approach your lender, please feel free to contact me. I am very well versed in loss mitigation and I will be happy to discuss some of the potential options with you, as well as give you an idea of what to expect when talking with your lender.
Visit my Foreclosure Help blog for more information and links to resources.
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Florida Foreclosure Help Cheryl Hale 954-675-9531
Saturday, March 1, 2008
Wednesday, February 13, 2008
What to do if you Can't Pay Your Mortgage
As a mortgage broker in Boca Raton, Florida I have been contacted by some clients who are no longer able to meet their mortgage payments for one reason or another. It's a stressful time, but in many cases, a solution can be achieved. Often, banks and lenders are willing to do a "work out" where a solution is reached that can keep you in your home.
Some examples of this include:
Loan modification: Your note rate is lowered for a period of time (2-5 years)to allow you to get back on track. Or your adjustable rate may be converted to a lower fixed rate.
Rate freeze: If you have an adjustable rate loan and the payment has increased to the point that you are unable to manage, you may eligible for a rate freeze to keep your payment at the original level.
Forbearance: The lender may allow you to "skip" 3 months or so of payments so you can catch up. The unpaid interest is added to the principal of your loan. Or they may extend the terms of your loan.
FHA Secure Loan: You may qualify for an FHA refinance if your missed payments were due to an adjustable rate increase that you cannot afford. You most likely be able to refinance into a fixed rate mortgage at a much lower rate. With this program, you will need to demonstrate that your late mortgage payments were a because of the rate increase and resulting payment increase.
In order any of the above to happen, you must be able to demonstrate that you will be able to make your payments as per the work out. You will be asked to provide financial statements just as if you were applying for a new loan. A foreclosure is very expensive for a lender, and they want to avoid it if they can. However, if a workout only delays the inevitable, then the lender is not likely to cooperate.
Be prepared to be patient...the loss mitigation departments are overwhelmed these days and it may take you several phone calls to reach a solution.
HUD has a website with some helpful information: Tips to Avoid Foreclosure. There is also a toll free number provided so you can speak with a HUD counselor free of charge.
Please don't hesitate to contact me if you are having problems making your mortgage payments. I may be able to help you with an FHA program. If not, I will advise you on how to approach your current lender with no obligation.
Visit my Foreclosure Help blog for more information and links to helpful resources.
Some examples of this include:
Loan modification: Your note rate is lowered for a period of time (2-5 years)to allow you to get back on track. Or your adjustable rate may be converted to a lower fixed rate.
Rate freeze: If you have an adjustable rate loan and the payment has increased to the point that you are unable to manage, you may eligible for a rate freeze to keep your payment at the original level.
Forbearance: The lender may allow you to "skip" 3 months or so of payments so you can catch up. The unpaid interest is added to the principal of your loan. Or they may extend the terms of your loan.
FHA Secure Loan: You may qualify for an FHA refinance if your missed payments were due to an adjustable rate increase that you cannot afford. You most likely be able to refinance into a fixed rate mortgage at a much lower rate. With this program, you will need to demonstrate that your late mortgage payments were a because of the rate increase and resulting payment increase.
In order any of the above to happen, you must be able to demonstrate that you will be able to make your payments as per the work out. You will be asked to provide financial statements just as if you were applying for a new loan. A foreclosure is very expensive for a lender, and they want to avoid it if they can. However, if a workout only delays the inevitable, then the lender is not likely to cooperate.
Be prepared to be patient...the loss mitigation departments are overwhelmed these days and it may take you several phone calls to reach a solution.
HUD has a website with some helpful information: Tips to Avoid Foreclosure. There is also a toll free number provided so you can speak with a HUD counselor free of charge.
Please don't hesitate to contact me if you are having problems making your mortgage payments. I may be able to help you with an FHA program. If not, I will advise you on how to approach your current lender with no obligation.
Visit my Foreclosure Help blog for more information and links to helpful resources.
Tuesday, February 12, 2008
Project Lifeline for Delinquent Homeowners
Some good news for homeowners who are facing foreclosure. A new program called Project Lifeline will help homeowners who did not qualify for relief with the Hope Now Alliance program...here are some excerpts from the news story at Mortgage News Daily
"Hope NOW Alliance announced that the Alliance is expanding its efforts to help homeowners facing foreclosure.
The new program dubbed Project Lifeline extends earlier Hope NOW efforts to include those who are seriously delinquent whether their problems are with subprime, Alt A or prime loans and will even assist those in foreclosure with second mortgages or home equity lines.
Borrowers who appear to qualify for help will receive letters from their mortgage servicers notifying them of the program and their possible eligibility. These borrowers, who will be at least 90 days behind in payments, must contact the servicer within 10 days of receiving the letter and inform the servicers that they are interested in the program, that they are willing to participate in counseling if required, and they must provide financial information to the servicer. If the loan appears salvageable, the homeowner will be granted a 30 day "pause" in the foreclosure process to allow time for a loan modification or other resolution."
Bottom line here: if you have a sincere desire to keep your home and you can document sufficient income for a workout solution, the lenders are willing to work with you to achieve a manageable solution.
Do not be afraid to contact your lender. The foreclosure process is expensive for the lender, and they would much rather come up with a solution for you to keep your home. Be honest with them about your circumstances, and they will work with you. If you are serious about keeping your home, do not give up. Most lenders are overwhelmed right now, and it may take some perseverance to work with them. Something you may not know...there are regulations in effect that prevent "debt collectors" from harassing you. They are trained to negotiate with you ...so don't feel like you are dealing with the enemy.
However, if you do not have the ability to make a regular monthly mortgage payment, then you should work with your lender and consider the following options:
selling your home
short sale
deed in lieu of foreclosure
I will discuss more about these options in future posts. In the meantime, if you would like more information, please contact me at 954-675-9531. I do not charge for a consultation.
So far, the lenders on board with Project Lifeline are Bank of America, Wells Fargo, Citigroup, Washington Mutual, J.P. Morgan Chase, and Countrywide Mortgage/Bank of America. If your lender is not part of this group, don't give up. More are expected to join.
"Hope NOW Alliance announced that the Alliance is expanding its efforts to help homeowners facing foreclosure.
The new program dubbed Project Lifeline extends earlier Hope NOW efforts to include those who are seriously delinquent whether their problems are with subprime, Alt A or prime loans and will even assist those in foreclosure with second mortgages or home equity lines.
Borrowers who appear to qualify for help will receive letters from their mortgage servicers notifying them of the program and their possible eligibility. These borrowers, who will be at least 90 days behind in payments, must contact the servicer within 10 days of receiving the letter and inform the servicers that they are interested in the program, that they are willing to participate in counseling if required, and they must provide financial information to the servicer. If the loan appears salvageable, the homeowner will be granted a 30 day "pause" in the foreclosure process to allow time for a loan modification or other resolution."
Bottom line here: if you have a sincere desire to keep your home and you can document sufficient income for a workout solution, the lenders are willing to work with you to achieve a manageable solution.
Do not be afraid to contact your lender. The foreclosure process is expensive for the lender, and they would much rather come up with a solution for you to keep your home. Be honest with them about your circumstances, and they will work with you. If you are serious about keeping your home, do not give up. Most lenders are overwhelmed right now, and it may take some perseverance to work with them. Something you may not know...there are regulations in effect that prevent "debt collectors" from harassing you. They are trained to negotiate with you ...so don't feel like you are dealing with the enemy.
However, if you do not have the ability to make a regular monthly mortgage payment, then you should work with your lender and consider the following options:
selling your home
short sale
deed in lieu of foreclosure
I will discuss more about these options in future posts. In the meantime, if you would like more information, please contact me at 954-675-9531. I do not charge for a consultation.
So far, the lenders on board with Project Lifeline are Bank of America, Wells Fargo, Citigroup, Washington Mutual, J.P. Morgan Chase, and Countrywide Mortgage/Bank of America. If your lender is not part of this group, don't give up. More are expected to join.
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