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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