Know the options! There are a number of options that may be available to you as a homeowner in distress, including:
- Mortgage modification
- Forbearance / formal forbearance
- Short sale / pre-foreclosure sale
- Deed-in-lieu of foreclosure
Knowing which option to pursue takes experience, so dont go it alone! Let Community Services be your helping hand! The key to avoiding loss of your home is quick action!Through open lines of communication with our financial specialists, Community Services will try to help you adjust or cure your mortgage default without reaching foreclosure. So, fight for your home before its too late. Act fast:
Call Community Services today at 727-481-2978.
Our menu of services.
Loan modification When homeowners incur a financial hardship, many lenders are open to negotiation and modification of mortgage loan terms. This could lower the interest rate and/or extend the term of the loan, resulting in lower, more affordable payments for the homeowner.
Repayment plan When homeowners suffer a long-term financial hardship, many lenders are willing to negotiate a repayment plan that will enable the borrower to stay in the home, with peace of mind. Usually such agreements allow the borrower to continue normal monthly payment, while the lender allows the amount in arrears to be repaid over an extended period of time.
Short sale When homeowners find themselves in a situation where the mortgage payments are simply too high and selling the home outright creates a negative position due to drop in value. Perhaps the borrower over-extended expectations or suffered an unexpected loss of income. Your loan modification experts will negotiate with your lender to accept a short sale amount on the property that is less than the amount owed. Some borrowers may find themselves in a position to walk away from the property owing nothing; every borrower should consult with a tax or financial advisor for details.
Special forbearance (FHA loans only, Type I and II) When a homeowner incurs a short-term financial hardship and the loan is 90 days to 365 days past due, the loss mitigation/loan modification specialist will also consider submitting a request for a special forbearance. A special forbearance is designed to provide you with more relief than is possible with a regular repayment plan. Typical approval can result in spreading the repayment over 12 months to 18 months. The Type II special forbearance can be used in an unemployment situation whereby the promise of future employment is present.
VA loan modification/refunding Homeowners may find themselves in a situation where the Veterans Administration buys the loan from the lender. Under refunding, the VA may have the flexibility to consider options to help the borrower save/stay in the home when the current lender could not or would not consider a loan modification. When the VA refunds a loan under 38 U.S.C. 36.4318, the delinquency is added to the principal balance and the loan is re-amortized. The new loan will be non-transferable without prior approval from the Secretary. If the interest rate was lowered and an assumption is approved, the interest rate will be adjusted back to the previous rate. Sometimes, VA loan modifications can result in a 24 month or more repayment plan.
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