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READ THIS BEFORE YOU SHORT SALE OR FORECLOSURE
If you or someone you know is HAVING PROBLEMS MAKING THEIR MORTGAGE PAYMENTS and is considering foreclosure or doing a short sale (selling the house for less than than you owe with the bank's approval), please consider the following: There are new laws that may change their decision. Specifically, if you pulled money out of your home by refinancing and taking a home equity line of credit, and did NOT put the money back into the home, the lender may have up to 4 years to come after your for the money. Both Short Sales and Foreclosures will drop your credit score about 300 points. If you re-establish credit, you MAY be able to purchase another home within 2 years (if you do a short sale) versus a 5 year period now required for foreclosures. However, consideration is on a case by case basis. There are also other options: 1. Loan Modification (Obama's Home Affordability Program through your lender which became effective March 4, 2009) 2. Forbearance - You are allowed to delay or reduce payment for a short period (this will temporarily cease legal actions). The lender gives you an opportunity to catch up the payment in a certain amount of time. 3. Repayment Plan - good if you have incurred only a short term financial hardship 4. Special Forbearance (FHA loans only) - typically used in an unemployment situation where your loan is 90 to 365 days past due. 5. Partial Claim (FHA only) - if you are 120 to 365 days past due, your past due payments can be placed into a 2nd mortgage with no interest and you will not be required to pay it until you have paid off your first mortgage. 6. Deed-in-lieu-of foreclosure (also known as CASH FOR KEYS). An agreement between the borrower and the lender where the lender will offer cash (up to $2,000) if the borrower peacefully vacates the property and leaves it is good condition. I can be reached at 480-980-2658 or jeanine.brown@cox.net, if you have additional questions or need further assistance.


				
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posted:1/31/2010
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