Know Your Options

Below are brief descriptions of the services we provide to save your home and/or your credit.  To make an appointment and discuss your options feel free to contact us for a free consultation.

 

LENDER REMEDIES

Before hiring or working with anyone try:

  1. Coming to terms with your lender. Remember the last thing lenders want is another foreclosure on their hands. Below is a list of remedies you can ask your current lender about:
    • Repayment Plan: A  plan to re-pay the lender all of the past due amounts and fees over a period of time.
    • Note Modification: if you have an adjustable rate and have come to this position because of the increasing rate, the not modification will give you a fixed rate or reduce your payments based on your credit and qualification information. This help you get back on your feet and cure the loan.
    • Forebearance: The lender has the capability to reduce or suspend payments for a period of time allowing you to recover from a financial setback.
    • Assumption: If the loan cannot be brought current and kept current, the payments on some loans can be assumed by a new borrower.
  2. Try curing the loan by asking for a personal loan from family or friends.

These are remedies you can try before taking any other steps. The lender will want to know why the loan is in default and why you think you will be able to make the payments in the future.

FORECLOSURE PREVENTION REMEDIES

If you are unable to execute any of the suggestions above, below are options we can assist you with:

Refinancing , New Junior Loans and Hard Money Loans

Basic lending guidelines will require all home loans will total up to less than 80% of the current market value of the property. If you have more equity than that, you will have a better possibility to obtain a new refinance or 2nd Trust Deed to bring your loan current. There are few programs that allow you to refinance 90%-100%, however they are very difficult to close and restrictive. Expect higher interest rates, loan fees and pre-payment penalties. One could apply for a hard money loan: Hard money loans are typically private investors who will lend money based on equity in the property. Credit and income are not usually issues of importance and loan approval can take as little as one or two days with funding following shortly. The hard money loan will usually be enough to cure your existing loan, pay the financing costs and put some money in your pocket. Loans will be amortized over 30 years to keep the payments low and the balance will be due in 2 to 5 years.

 

SPECIAL REFINANCE BAILOUT: FHASECURE

Falling behind due to your adjusted mortgage? FHA Secure can help...

"FHASecure is designed for families who are good borrowers, but were steered into high-cost loans with teaser rates, " states Assitant Secretary for Housing-FHA Commissioner Brian Montgomery. "

 

FHASecure, like all FHA products, will be underwritten to ensure the borrowers have the ability to repay the loan, requires escrow for taxes and insurance, and will continue to offer unprecedented foreclosure prevention assistance. The FHA has never permitted and will not include pre-payment penalties or teaser rates that are common in exotic mortgages and have caused much of the current market troubles.

Not every lender is able to offer FHA/HUD Products, Southland Diamante Realty is a HUD/FHA approved broker.

To qualify for FHASecure, eligible homeowners must meet the following criteria:

  • Borrower must be delinquient on their mortgage
  • A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
  • Interest rates must have or will reset between June 2005 and December 2009;
  • Three percent cash or equity in the home;
  • A sustained history of employment; and
  • Sufficient income to make the mortgage payment.

 

Pre-Forclosure Sale/Short Sale

Sale of the property before the foreclosure can be completed -- your professional will ask for an extentsion of the sale date from your lender and any other  conditions. If proceeds from the sale aren't enough to fully repay the loan, this is often referred to as a "Short Sale" for more information on Short Sales click here.