Foreclosure Options

Foreclosure is the process of a lender recovering the mortgaged property after a lack of timely payments. Lenders don't really want your house, they have enough these days, they want income from the money they loaned out. They are looking at a lot of options these days:

Loan Modification can be the answer to you staying in your house. With professional help, you can: get a better interest rate, lowering your payments, have the missed payments rolled to the back of the loan, or have the balance of the loan lowered to reflect the current value of your house.

What is a short sale? A short sale is when the lender (or lenders) agree to take less than the mortgage balance and still release the property for sale, or re-write the loan to you. This process usually requires a competent real estate agent to prove to the lender(s) involved that the property simply will not bring what the loan balance is. You usually also have to prove that you can o longer afford the property due to some change in your life. You may still be held potentially liable for the difference between the loan balance and the sale price, but is becomes an unsecured debt. The lender benefits because your house is not in their foreclosure inventory until it sells. They have enough inventory these days.

Deed in Lieu of Foreclosure: You offer to "hand over" the deed to the lender rather than them going through the foreclosure process. You always want a "no recourse" short sale or deed in lieu of foreclosure. "No recourse" means that the lender agrees not to chase you for the balance due after the sale. No Recourse is the only way you want to go!

How does a foreclosure hurt a credit score? Everywhere. The original mortgage had late payments, a major hit. Foreclosure, in many states requires a Court Order, that means a Public Record hit. Then there is the write off amount that becomes a collection. From a Credit Score standpoint this is a major challenge, but CCFG has dealt with it before, and we can do it again. Foreclosure does not have to hold you back for 7 years, let CCFG speed up the clock for you too.