Today, one in ten families with a home mortgage is either late in their payments or soon will be. This page provides a summary of the choices available to those homeowners. I am available for no-cost consultations with homeowners facing tough choices to help them decide what is the best solution for their family.

The first consideration is whether the financial shortfall is temporary and whether the home needs to be sold if not. If the shortfall is temporary or small, your mortgage servicer may be able to work with you to allow you to remain in your home. Options include a mortgage modification, a reinstatement, or forbearance. These options rely on the homeowner being able to show that they will be able to comply with the terms of the plan. In other words, to be able to make future payments.

If your financial situation will not allow you to make your mortgage payments and a workout with your lender is not acceptable, selling your home may be the best choice. Doing nothing will result in foreclosure with the home going back to the lender. Banks do not want to own homes and they have been willing to allow home sales even if the sale amount results in writing off part of the loan balance in order to complete the sale. This is called a short sale or short payoff.

For the homeowner, there are many advantages to cooperating in a short sale rather than letting the home go into foreclosure. The impact on your credit score is much less with a short sale and a foreclosure stays on your public record forever. A foreclosure can also impact your ability to get a job or, perhaps, to keep the job you currently have. A foreclosure can have a negative impact on a security clearance. Some people who have sold their home through a short sale have qualified to purchase a home again in just two years.

As a Certified Distressed Property Expert, I am qualified to help you or anyone you introduce to me through the steps to determine the best route to take to get out from under the burden of not being able to make mortgage payments. Time is important and delaying getting starting on the process takes away your choices. Contact me immediately if you find yourself in this situation.

Contact Duncan