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Health & Fitness

Options Instead of Foreclosure

If you're thinking of walking away from your home, take a deep breath instead. There are other options.

If you're thinking of walking away from your home, you're not thinking clearly.  Take a deep breath instead.  There are other options but you have to take action.

If you have equity and have had a temporary financial setback consider a reinstatement.  You have to be able to pay all the missed payments, late fees and legal fees for this option. 

If you can't pay all the missed payments, ask the bank for a re-payment plan.  You can negotiate with the bank to make up the missed payments over time or put the missed payments at the end of the loan.

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Sell the property.  It may not take as long as you think.  If you do decide to sell you have to make sure to be aware of the foreclosure time-line.

If you have payments low enough to allow you to rent and keep up the mortgage payments, then you might consider renting the property.  This one is risky - you have to consider that insurance and taxes still have to be paid. 

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In an effort to stop so many foreclosures the government created the Home Affordable Modification Program (HAMP).  Whether you go through this program or not, loan modification is a really good alternative for those who have weathered a financial storm and can get back on track once a modification has been put in place.

A "friendly foreclosure" or deed-in-lieu of foreclosure is when a homeowner gives the deed back to the bank.  The mortgage company agrees to take the deed back in exchange for the property.  This only works when there is one mortgage and very small liens or no liens at all.

If your credit isn't is too badly damaged, you have equity and stable income you may be able to refinance.

Bankruptcy is a tough one to consider because it has so many pitfalls. Bankruptcy will delay the foreclosure but it may create more problems and should be used only once you've consulted with an attorney who can evaluate your situation as a whole.

If you're in the military there are special programs designed to fit your unique circumstances.  The Servicemembers Civil Relief Act (SCRA) provides certain protection to military personnel like mortgage relief, termination of leases, protection from eviction, a cap on interest rates, stay of proceedings, and reopening of default mortgages. 

There's also the Homeowners Assistance Program (HAP) which helps soldiers who are having difficulty because of base closures, or have been wounded or injured, or become ill when deployed.

Sometimes it's just too much to think about.  If you've gotten to the point where you're not reading your mail or answering the phone, call a Certified Distressed Property Expert - we've been trained to educate you on your options and help you through this process.  With no judgment.

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