1. Get in touch with your lender quickly.
- Waiting to call could put you further into delinquency.
- Once your payment is overdue, your opportunity to get the lender’s cooperation lessens.
- Homeowners should contact the loss mitigation (or loan modification, foreclosure, short sale, reinstatement or work out department).
The phone number on your payment voucher is probably a service company. You may have to spend a lot of time tracking down the correct contact number or department.
2. Lenders don’t want to own property!
- Their business is lending, not selling real estate.
- Keep in mind that they are not the enemy and will likely want to work with you.
- After you contact the lender and explain your situation.
All they want is to ensure that the loan is paid.
3. Lender Options:
- Loan Modification of your current loan.
> This will change the terms of the original loan without going through the process of refinancing the loan.
> To get approved for a Loan Modification will require scrutiny of all necessary financial information and credit.
> If you have missed payments they may be added to the balance of the loan.
> After the owner signs an agreement they will have a new modified monthly payment as a part of the changes.
- Special Forbearance Plan or Repayment plan for the payments an owner has already missed.
> This allows homeowners who can make their payments now but missed previous payments that might be hard to make up.
> This option delays foreclosure if the homeowner promises to repay the delinquent payments the lender, mortgage insurer, and/or investor.
> The homeowner will have to submit all requested financial information before approval of this option.
> A part of missed payments may be added to the current payments until the account is in good standing.
- Loans insured by the Department of Housing and Urban Development or the FHA, may be eligible for a one-time payment to get your mortgage payment current.
4. For homeowners who have had a financial hardship like, an extended expensive illness, there could other options available. To find out about other options contact the Homeownership Preservation Foundation (http://www.995hope.org/) at 1888-995-HOPE.
5. Hire a professional with experience in Short Sales/Foreclosures. Many top agents have received extra credentials in this area.
- Look for the SFR designation beside their name that indicates they passed and received training for Short Sales.It’s important to have a professional Realtor on your side for successful negotiation with your lender.
You have several options if you are considering a short sale in Denver. Contact our team today and we will answer any questions you might have about this process.
Posted on Denver Real Estate-Denver Homes For Sale