Alternatives to Foreclosure

Deed In Lieu of Foreclosure

Under many conditions lenders will accept the property back from the borrower as full payment in order to save the time and expense of going through the foreclosure process.

Short Sales

In this scenario, the lender will accept less that the full amount of the principal as payment in full for the balance of the mortgage. If the short sale is approved, the property is sold to a third property. The lender will typically stipulate the following two conditions: one that the homeowner no longer resides in the property; and two, that the homeowner does not receive any proceeds from the sale.

Repayment Plan

If you have incurred a short term financial hardship and your loan is two or more months past due, your loss mitigation specialist will also consider submitting a request for a payment plan to your lender for approval. Only after reviewing your financial situation will this option be considered. All clients must be able to show that they can afford this plan in order to be eligible.

Forebearance

If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, the loss mitigation specialist will also consider submitting a request for a special forbearance. A special forbearance is designed to provide you with more relief than is possible with a regular repayment plan. Typical approval can result in spreading the repayment over 12 to 18 months.