Foreclosure Alternatives for the Homeowner

There are many options available to homeowners behind on their mortgage payments. At Loanmodificationstudio.com, we believe in truly educating the consumer. Prevent foreclosure by educating yourself.

The better you can arm yourself with pertinent information, the more likely you'll make the best decision for your situation. Remember, nobody cares more about your finances more than YOU. So, please take the time to read and listen and most importantly question everything. Indeed, there are many companies, law firms, and government programs out there that are looking to HELP you determine which action to take to stop foreclosure.

The only thing more expensive than education is ignorance.
- Ben Franklin

In this business, we see a lot of homeowners that are indecisive, so the purpose of Loanmodificationstudio.com is to inform and educate, we fully disclose who we are and what we can do and how we do it. The you make your decision. If you decide to use our services, that's fantastic. If you decide to use another company's services, that's also great.
The important thing is to start immediately working towards resolving your problems.

Below are your most common foreclosure alternatives:

Refinance

If you are multiple months behind on your mortgage payment this option is typically not viable. Especially today, most banks will not refinance a homeowner behind on their mortgage. There is one exception though. If you have greater than 35% equity in your home, you have a chance to refinance.

Loan Modification

A loan modification is a solution whereby your loan term, rate, payment, and principle may be changed to benefit you as the homeowner, the bank and other parties involved. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.Please fill out the form and our experts will contact you to explain our services. We will use our expertise to help evaluate your situation and see whether you qualify. As a qualified loan modification candidate, we have agood probability of succesfully completing the loan modification process.

Forbearance

Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

Deed in lieu

While most banks will not entertain this option, if you have no equity and/or no way to maintain payments on this property, a Deed in Lieu of Foreclosure is a great option. Basically the bank accepts the deed to your home, for the amount you owe, instead of going to foreclosure. This won’t save your house but it is much better than a foreclosure.

Bankruptcy

Bankruptcy is extremely damaging to your credit. Statistically 85% of homeowners who file for bankruptcy will go back into foreclosure. Bankruptcy does not wipe out secured debt aka your mortgage debt however it will wipe out unsecured debt aka your credit card debt. If you are seking an attorney in regarding bankruptcy perform your diligence before hand and ask a lot of questions.

Sale

If you have a long term problem and you cannot make your mortgage payment this may be our best option. However if you do not have equity in your home the sale of your home will become a Short Sale.

Short Sale

You are candidate for a short sale if you answer YES to the following questions:

• Are you in a financial hardship? Or is it hard for you to make your mortgage payments each month?
• Do you have little or no equity in your home?

If you answered yes to either question please contact us and we can refer you to a short sale specialist for a free phone consultation.

Short Refinance

This is when you negotiate with your lender and they agree to accept a reduction in the amount of principal owed on your mortgage to allow you to refinance. This is obviously helpful in situations where home prices have dropped dramatically and a borrower owes more on the home than it is worth. While this is not very common it is worth it to see if your bank would accept this option.