Mortgage Options Coldwell Banker Northern California
Elk Grove Office

**THIS PAGE IS UNDER CONSTRUCTION**
 
Having trouble with your mortgage?
You Have Options!!
 
Before you make a decsion be sure you understand your options and the pros and cons of each. You will need to consult with a tax advisor, attorney and realtor to fully understand your options and the best choice for you. Each person's situation is unique and you should not rely on the experience of your family and friends in making a decision for yourself.
 
What are your options?
  • Loan Modification
  • Short Sale
  • Deed in Lieu of Foreclosure
  • Foreclosure
  • Bankruptcy
What is a loan modification? 
 
......insert information......
 
What is a short sale?

A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

What is a deed in lieu of foreclosure?
http://www.hud.gov/offices/hsg/sfh/nsc/faqdil.cfm
 
In this transaction, known as deed in lieu of foreclosure, the home owner turns over the deed to the bank in exchange for the lender’s promise not to foreclose. Typically, the borrower can remain in the property for a short period of time until they are able to move, but they must leave the home in good condition


What happens in foreclosure?
http://www.foreclosurelaw.org/California_Foreclosure_Law.htm

What about bankruptcy? You MUST consult an attorney to fully understand bankruptcy. A realtor is not qualified to provide you with information on bankruptcy.
 
 
Does your mortgage company participate in the HAMP Program? Check here:  http://www.makinghomeaffordable.com/contact_servicer.html
Are you eligible for the HAMP Program? Check here:  http://makinghomeaffordable.gov/modification_eligibility.html
 
If you do not qualify for HAMP, you may qualify for HAFA. Check here:  http://makinghomeaffordable.gov/modification_eligibility.html
 
Understand your risk to pay a deficiency balance on foreclosed or loan modification:  http://money.cnn.com/2010/02/03/real_estate/foreclosure_deficiency_judgement/
 
 
Which Loans Are Eligible for HAFA?

The Home Affordable Foreclosure Alternative Program provides short sales guidelines for loans not owned or guaranteed by Fannie Mae or Freddie Mac (those agencies are expected to release their own, similar guidance). The following conditions also must be met:

  • The property is the borrower’s principal residence.
  • The mortgage loan is a first lien mortgage originated on or before Jan. 1, 2009.
  • The mortgage is delinquent or default is reasonably foreseeable.
  • The current unpaid principal balance is equal to or less than $729,750.
  • The borrower’s total monthly mortgage payment exceeds 31 percent of the borrower’s gross income.