Alternatives to Foreclosure

ALTERNATIVES TO FORECLOSURE What is foreclosure? It's the process of taking possession of a mortgaged property as a result of someone's failure to keep up mortgage payments. Foreclosure doesn't have to be the final say of keeping or losing your property. See the statistics of foreclosure and how you can possibly save your property from being taken for good. HOW FORECLOSURE IS AFFECTING OUR COUNTRY FORECLOSURE FILINGS PER 10,000 RESIDENTIAL UNITS IN SEPT 2010 0.5 10 15 26.2 144.9 WHEN AMERICANS THINK THE FORECLOSURE WILL END 1% 27% 24% 22% 10% 4% 12% 2010 2011 2012 2013 2014 2015 or LATER ALREADY RECOVERED ATTITUDES ABOUT FORECLOSURE PROPERTIES PERCENTAGE OF AMERICANS WHO AGREE WITH THIS STATEMENT: "There is a NEGATIVE STIGMA regarding buying foreclosure properties" 69% 85% 78% MAY2008 MAY2009 MAY2010 WHAT ALTERNATIVES ARE AVAILABLE? SPECIAL PRE-FORCLOSURE REAMORTIZATION FORBEARANCE SALE DELINQUENCY REDUCING FOR SALE PAYMENTS 3THEUMTE TATESOFHERIA LOAN AMOUNT Temporarily reducing or suspending your payments for a fixed period of time. At the end of that time, you must make a lump sum This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating. If you're unable to afford the house Delinquency is added to the loan balance in order to bring your payments up to date. This will then increase your loan amount and will also increase your monthly payment or enter into a long term repayment plan to pay back the reduced or long-term, you may sell the house yourself before the foreclosure sale and save payments. suspended amount. some of your equity. DEED-IN-LEIU SPECIAL REPAYMENT OF FORECLOSURE FORBEARANCE REDUCTION As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but may help your chances of getting another mortgage loan in the future. Establishing a schedule with your Lender to make a full regular monthly payment plus a little extra each month, to repay the delinquent amount over a specified period of time. Provides a temporary reduction or suspension of payments, that will be increased at a later point to repay the delinquent amount over a specified period of time. MORTGAGE HUD PARTIAL CLAIM REFINANCE MODIFICATION EQUITY REFINANCE DEBT ONE TIME PAYMENT EQUITY EQUITY EQUITY EXTEND TERM This option may allow you to refinance the debt and / or extend the term of your existing mortgage loan. If your loan is an FHA insured loan, your lender may be able to obtain a one time payment from the FHA-Insurance Fund to Using the equity that you have established in your home to pay the delinquent amount. Depending on the interest rate of your new loan, monthly payments might be reduced. bring your mortgage loan current with payments. HOMEOWNERS' HARDEST HIT SHORT SALE EMERGENCY FUND INITIATIVE MORTGAGE ASSIS. ORIGINAL PRICE FINANCIAL ASSISTANCE PENNSYLAVNIA On February 19, 2010, President Obama announced a plan to provide $1.5 billion to the five states hardest hit Providing special financial assistance to Pennsylvania residents who are facing the possibility of losing their primary residence through foreclosure. They may be eligible to receive a LOAN to bring their mortgage SALE PRICE by unemployment and foreclosure to help them administer new foreclosure A short sale is when your mortgage bank investor has agreed to take less than what is owed. prevention programs. The funds support HFA efforts in Arizona, California, Florida, Michigan, and Nevada payments current. CHAPTER 13 HAFA PROVISIONS PARITAL CLAIM BANKRUPTCY MUST MEET CONDITIONS: LONG TERM ABILITY PROVIDES: CHAPTER 13 TO REPAY LOAN PROVIDES $3,000 BORROWER RELOCATION PROVE FINANCIAL HARDSHIP IS OVER THE UNIED STATES OF RIA PROVIDES $1,500 ONE ADMINISTRATIVE COSTS LIVE IN PROPERTY GOOD CONDITION PROVIDES $2,000 TO AT LEAST 4 MOS, BUT NO MORE THAN 12 MOS DELINQUENT Chapter 13 has also been called a "Payment Plan Bankruptcy" or a "Wage Earner Bankruptcy." It is a way of having some or all of your debts paid back over time out of your wages. Like a Chapter 7, you list all of your property and all of your debts. But unlike Chapter 7, you get to keep all of your property. A Chapter 13 case SHORT SALE INVESTORS Homeowners are given an interest free loan, guaranteed by HUD, to pay off the arrears and reinstate Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home. a delinquent loan. This loan is must be repaid when the first mortgage is paid off, or when the property is sold. SOURCES http://www.vba.va.gov/ro/cleveland/foreclosure_alternatives.htm#Reamortization http://www.vba.va.gov/ro/cleveland/foreclosure_alternatives.htm#Reamortization http://www.ncsha.org/advocacy-issues/hardest-hit-foreclosure-initiative http://www.realtor.org/government_affairs/short_sales_hafa http://www.bbrs.net/chapter13.html http://www.foreclosurefish.com/blog/index.php?id%3D393 http://www.makinghomeaffordable.gov/get-assistance/explore-eligibility/Pages/eligibility.aspx http://elearningexamples.com/wp-content/uploads/2010/12/In-the-Shadow-of-Foreclosures-Infographic.png http://3.bp.blogspot.com/_8C08KH9F_5c/TBjhhQlz681/AAAAAAAAANS/R2JTcdRuZjO/s1600/ForeclosureProcessInfo Graphic.jpeg http://www.truliablog.com/wp-content/uploads/american-attitudes-toward-foreclosure.jpg http://30.media.tumblr.com/tumblr_Iklum9oool 1qis6eko1_400.png http://www.athomeinkaty.com/blogpress/wp-content/uploads/ig-fc-price.jpg http://southfloridalawblog.com/wp-content/uploads/2011/05/WhenHousingMarketRecoversInfographic.jpg http://www.mint.com/blog/trends/foreclosures-O6282010/?display%=Dwide