Are you loosing your home, and burning out your mind
thinking on your credit fate?
thinking on your credit fate?
FOR SELLERS:
What you should know:
There are other options that help you to avoid a foreclosure:
Loan Workout:
A loan workout is then you negotiate with your lender any kind of plan that will benefit both you
and the lender when you are delinquent or in default. This is a broad term used in the industry to
cover the different options you may have such as a loan modification, repayment plan, short sale,
forbearance plan etc.
Loan Modification:
This is when the lender modifies your current mortgage in order to work with you and make your
mortgage more affordable. In the past this was only used when a borrower was delinquent but
now it is being used before someone is delinquent. This will be the hottest term and way to help
people avoid foreclosure.
To this process you may obtain
Short Sale:
This is used when all negotiations for a loan workout have failed and you are upside down on your
mortgage meaning you owe more than it 's worth. The lender basically agrees to cooperate in the
sale and take the lost. It means that sales proceeds do not fully payoff the existing loan(s) and
lender(s) accepts a discounted payoff to fully satisfy the loan. You place the home for sale and
any offers are presented to the bank. Unlike a traditional sale when the homeowner decides what
offer to take. The bank controls the negotiations and the homeowner has no say in the process.
It's a last ditch effort to save someone's credit from a foreclosure filing.
Lieu of Foreclosure:
Is a deed instrument in which a mortgagor (i.e., the borrower) conveys all interest in the real
property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure
proceedings. The deed in lieu of foreclosure offers several advantages to both the borrower and
the lender. The principal advantage to the borrower is that it immediately releases him from most
or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids
the public notoriety of a foreclosure proceeding and may receive more generous terms than he
would in a formal foreclosure. Advantages to a lender include a reduction in the time and cost of
a repossession, and additional advantages if the borrower subsequently files for bankruptcy. In
order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the
real estate being transferred. Both sides must enter into the transaction voluntarily and in good
faith. The settlement agreement must have total consideration that is at least equal to the fair
market value of the property being conveyed. Generally, the lender will not proceed with a deed in
lieu of foreclosure if the current fair market value of the property exceeds the outstanding
indebtedness of the borrower. Because of the requirement that the instrument be voluntary,
lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of
such a conveyance from the borrower that specifically states that the offer to enter into
negotiations is being voluntarily. This will enact the parol evidence rule and protect the lender
from a possible subsequent claim that the lender acted in bad faith or pressured the borrower
into the settlement. Both sides may then proceed with settlement negotiations.
Click for Apply
Loan Workout:
A loan workout is then you negotiate with your lender any kind of plan that will benefit both you
and the lender when you are delinquent or in default. This is a broad term used in the industry to
cover the different options you may have such as a loan modification, repayment plan, short sale,
forbearance plan etc.
Loan Modification:
This is when the lender modifies your current mortgage in order to work with you and make your
mortgage more affordable. In the past this was only used when a borrower was delinquent but
now it is being used before someone is delinquent. This will be the hottest term and way to help
people avoid foreclosure.
To this process you may obtain
- Rate reduction.
- Principal Reduction.
- Rates adjustable to fix.
- Affordable mortgage payment.
Short Sale:
This is used when all negotiations for a loan workout have failed and you are upside down on your
mortgage meaning you owe more than it 's worth. The lender basically agrees to cooperate in the
sale and take the lost. It means that sales proceeds do not fully payoff the existing loan(s) and
lender(s) accepts a discounted payoff to fully satisfy the loan. You place the home for sale and
any offers are presented to the bank. Unlike a traditional sale when the homeowner decides what
offer to take. The bank controls the negotiations and the homeowner has no say in the process.
It's a last ditch effort to save someone's credit from a foreclosure filing.
Lieu of Foreclosure:
Is a deed instrument in which a mortgagor (i.e., the borrower) conveys all interest in the real
property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure
proceedings. The deed in lieu of foreclosure offers several advantages to both the borrower and
the lender. The principal advantage to the borrower is that it immediately releases him from most
or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids
the public notoriety of a foreclosure proceeding and may receive more generous terms than he
would in a formal foreclosure. Advantages to a lender include a reduction in the time and cost of
a repossession, and additional advantages if the borrower subsequently files for bankruptcy. In
order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the
real estate being transferred. Both sides must enter into the transaction voluntarily and in good
faith. The settlement agreement must have total consideration that is at least equal to the fair
market value of the property being conveyed. Generally, the lender will not proceed with a deed in
lieu of foreclosure if the current fair market value of the property exceeds the outstanding
indebtedness of the borrower. Because of the requirement that the instrument be voluntary,
lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of
such a conveyance from the borrower that specifically states that the offer to enter into
negotiations is being voluntarily. This will enact the parol evidence rule and protect the lender
from a possible subsequent claim that the lender acted in bad faith or pressured the borrower
into the settlement. Both sides may then proceed with settlement negotiations.
Click for Apply
INFO FOR SELLERS & BUYERS
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