9 Ways to Avoid Foreclosure

9 Ways to Avoid Foreclosure

Are you having trouble making your mortgage payment? Here are 9 Ways to Avoid Foreclosure:

Reinstatement: Bring the loan current

Forbearance: Temporary repayment plan

Refinance: New loan with reduction in monthly payments

Loan Modification: Modify original loan terms

Sell the Property: Use equity to payoff or pay difference

Rent the Property: Must make loan current

Deed in Lieu of Foreclosure: “friendly foreclosure”

Bankruptcy: Will stall foreclosure but not prevent it

Short Sale: Negotiate with bank to accept sale under loan amount

Have you suffered any of these hardships?

• Loss of job
• Business Failure
• Damage to Property
• Death of a Spouse
• Death of Family Members
• Severe Illness
• Inheritance
• Divorce
• Mandatory Job Relocation
• Medical Bills
• Military Service
• Payment Increase or Mortgage Adjustment
• Insurance or Tax Increase
• Reduced Income
• Separation
• Too Much Debt
• Incarceration

If so, you may qualify for a short sale.

Short Sale vs. Foreclosure

Short Sale

• Property is sold and lender accepts proceeds as payment

• You may be released from any deficiency judgment liens filed against you

• No foreclosure reported on to credit bureaus

• Reflects on your credit reports for approximately 2 years

• FICO score may drop between 75 – 125 points

Foreclosure

• Lender takes ownership and forces the sale of the property

• Lender has the ability to file a deficiency judgment against debtor and any other properties owned

• A foreclosure will be reported to credit bureaus

• Reflects negatively on your credit report for up to 10 years

• FICO score may drop between 200-280 points potentially causing loss of security clearances

Documents needed for a short sale

• Two months most recent mortgage statements (all mortgages)

• Two months checking account statements (all borrowers if separate)

• Two months saving account statements (all borrowers if separate)

• Two months other account statements (all borrowers if separate)

• Last two paycheck stubs (all borrowers)

• Two years tax returns

• Hardship Letter

• Financial Worksheet

Both Eddie and Steven have extensive training in foreclosure avoidance and short sales. Eddie and Steven are well versed professionals with extensive experience in co-operative and condominium sales. 

Compass is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our services, your lender may not agree to change your loan.