5 Things that You Can Do to Avoid a Short Sale…and Keep Your House

Homeowners

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.