What options are available for people who is behind in their mortgage payments and would like to avoid loosing their home and stop foreclosure?

Briefly described are the most practical ways you can stop foreclosure in California in today’s market:

SPECIAL 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.

• For borrowers who have incurred a short term financial hardship and are two or more months past due.

• Borrowers must be able to show that they can afford their current mortgage payment in addition to a new re-payment plan to bring their behind payments up-to-date.

• If you are able to pay an additional $600.00+ (Estimate) on top of your currently mortgage payment and you no longer have a hardship, then this could be the way to stop foreclosure.

• Borrowers must show paperwork (Lite Doc) to prove they can afford their mortgage payment and their new payment plan.

• If you would like free assistance, you can get it from a non-profit organization called HOPE by dialing (888) 995-4673

PARTIAL CLAIM

Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.

You might qualify if:

• Your loan is at least 4 months delinquent but no more than 12 months delinquent.

• You are able to begin making full mortgage payments.

When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a lien will be placed on your property until the Promissory Note is paid in full.

The Promissory Note is paid in interest-free and is due when you pay off the first mortgage or when you sell the property.

PRINCIPAL REDUCTION REFINANCE

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One of past clients who we sold a home in 2005 wanted to buy a newer, cheaper home and loose his current home.

Here is his scenario:

He purchased a 3 Bed / 1 bath home purchased in Los Angeles in July 2005 for $330,000.

He then used the services of another lender and refinanced his home in Nov 2006, cashed out some money and ended up getting screw up by the lender by being offered a negative amortization loan (The Famous “Pick-A-Payment-Loan”).

He borrowed $380,000 in Nov 2006.

He currently owes  $458,500 due to the negative amortization and his home value is $260,000.

He is $198,500 in the hole wants to loose his home but before he does, he wants to buy another home.

Lenders see this “buy and bail” scheme as fraudulent and borrowers could be sued by the lender if the lender can show that the homeowner committed fraud by misrepresenting themselves on their loan application.

Even real estate professionals such as  agents or brokers could face federal charges by the FBI if they knowingly collaborate with anyone to acquire a new home under false pretense.

What solution is available to homeowners with negative amortization loans?

There is always the option of “Loan Modification”

Congress recently passed a housing rescue bill aimed at sparing 400,000 struggling homeowners from foreclosure.

The measure lets homeowners who cannot afford their monthly payments refinance into more affordable government-backed loans rather than losing their homes.

If you would like detail information about how to modify your existing loan even if you are behind in your payments and have no equity whatsoever, please contact us by clicking on the following link: www.RealtorSpeaks.com/contact-us  and we will show you how you can modify your existing loan to save your home.