Be Informed – Know Your Options As A Seller

Know Your Options

There are many options for homeowners who are struggling with their mortgage payments.  Fannie Mae recently published a list of detailing some of the options that may be available.  To learn more KnowYourOptions.com

 

Refinance

A new loan — with new terms, interest rates and monthly payments — that completely replaces your current mortgage. Even if your home value has decreased, you may be able to refinance your loan as part of the government’s Home Affordable Refinance Program (HARP). Refinance benefits:

  • Make your payment more affordable by lowering your interest rate or adjusting the terms of your loan
  • No negative impact to credit score
  • Stay in your home and avoid foreclosure 

Repayment Plan

An agreement between you and your mortgage company that lets you pay the past due amount on your mortgage payments over a specified time period in order to bring your mortgage up to date. Repayment plan benefits:

  • Catch up on your past due payments over an extended period of time
  • Less damaging to your credit score than a foreclosure
  • Stay in your home and avoid foreclosure

Forbearance

An offer by your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a specified period of time. Forbearance benefits:

  • Have time to improve your financial situation and get back on your feet
  • Less damaging to your credit score than a foreclosure
  • Stay in your home and avoid foreclosure 

Modification

An agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, etc. You may be eligible for the government’s Home Affordable Modification Program (HAMP) created to help struggling homeowners. Modification benefits:

  • May reduce your monthly mortgage payments to a more affordable amount
  • Less damaging to your credit score than a foreclosure
  • Stay in your home and avoid foreclosure 

Short Sale

A short sale is the sale of a home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off your mortgage balance with the proceeds. Short sale benefits:

  • Eliminate or reduce your mortgage debt
  • Assistance for relocation may be available 
  • May be able to recover your credit score—and get another mortgage—faster than if you went through foreclosure

Deed-for-Lease™

A new program that allows you to temporarily lease your home. You first transfer the ownership of your home to the mortgage company (called a Deed-in-Lieu of Foreclosure, see below) in exchange for release from your mortgage loan and payments. You can then rent the property back—at an affordable rate—and remain in the home as a tenant. Deed-for-Lease benefits:

  • Stay in your home and neighborhood—no need to move or relocate
  • May be able to recover your credit score faster than if you went through foreclosure
  • Assistance for relocation may be available at the end of your lease
  • Avoid foreclosure

Deed-in-Lieu of Foreclosure

With a Deed-in-Lieu of Foreclosure (DIL), transfer the ownership of your property to your mortgage company in exchange for a release from your mortgage loan and payments. DIL benefits:

  • Eliminate or reduce your mortgage debt
  • May be eligible for relocation assistance 
  • May be able to recover your credit score—and get another mortgage—faster than if you went through foreclosure

 

 

 

Source:  FannieMae

http://www.knowyouroptions.com/

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Raised and educated in the Bay Area, I have an unique insights and perspective on the area. As a Mother I have first-hand knowledge of the local school systems, as well as recreational and business opportunities. My clients' satisfaction is my ultimate goal, and my genuine love of people makes a personal approach to service the key to fulfilling Real Estate dreams Whether buying or selling, I am committed to meeting my client's expectations. I understand that buying or selling a house can be a stressful time. With my expert knowledge of the real estate process, I am able to guide my clients and relieve some of the stress. I love what I do, and I am dedicated to providing professional service with honestly and integrity. My mission is not complete unless my clients are happy. Please contact me if there is anything I can do to help you.

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