Chip Hodgkins Home Selling Team
Chip Hodgkins
Chip Hodgkins Real Estate

Do you feel like you’re upside down on your mortgage…

or worse, you are in jeopardy of losing your home, then we can help you!

 

We have specialized for years in helping homeowners get out of sticky situations. It doesn’t matter to us how you ended up where you are. All that matters is that we can give you the help you need to get your situation resolved.

 

You have to talk your self through it. Follow these easy steps to evaluate your situation, review your options, and look at the big picture.

 

  1. Explain your situation-OUT LOUD! Speaking out loud for yourself or with your significant other can help you understand your true position. Discuss, what happened, how you got where you are and what options you believe are available.
  2. Contact your lender. Owning a home isn’t only a significant financial investment. It is also a source of immeasurable pride. You may want to avoid calling your lender. For most, it is embarrassing to discuss financial difficults, and you may believe your lender will want to rush into foreclosure and collect what they can! IT’S NOT TRUE! Foreclosure is expensive for lenders, mortgage insurers and investors and your lender is required to work aggressively with you when facing money problems. There are many workout plans available but don’t be too optimistic. The farther you fall behind, the less options that will be available to you.
  3. Prioritize your Debts. Failing to pay any of your debts will be damaging to your credit. And if you stop making payments on your mortgage you will surely lose you home. So any income available after food and utilities and other necessaries are paid for should go towards your mortgage, even if you aren’t making the full payment.
  4. Explore Loan Workout Solutions. IF you can keep your mortgage current you should do so, however, if you find that you are unable to make your mortgage payments, you may qualify for a loan workout option. Check with your lender to find out which of these options may be available.
    1. Reinstatement: Your lender is always willing to discuss accepting the total amount owed to them in a lump sum by a specific date. They will often combine this option with Forbearance.
    2. Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time after which another option must be agreed upon to bring your loan current. A forbearance option is often combined with a Reinstatement when you know you will have enough money to bring the account current at a specific time in the future.
    3. Repayment Plan: You may be able to get an agreement to resume making your regular monthly payments, in addition to a portion of the past due payments each month until you are caught up
    4. Mortgage Modification: If you can make the payments on your loan, but you do not have enough money to bring your account current or you cannot afford the total amount of your current payment, your lender may be able to change one or more terms of your original loan to make the payments more affordable. Your loan could be permanently changed in one or more of the following ways:

                                                               i.      Adding the missed payments to the existing loan balance.

                                                             ii.      Changing the interest rate, including making an adjustable rate into a fixed rate.

                                                            iii.      Extending the number of years you have to repay.

    1. Claim Advance: If your mortgage is insured, you may qualify for an interest-free loan from your mortgage guarantor to bring your account current. The repayment of this loan may be delayed for several years.
  1. If Keeping Your Home Is Not An Option -- Call Your Lender
    1. Sale: If you can no longer afford your home, your lender will usually agree to give you a specific amount of time to find a purchaser and pay off the total amount owed. You will be expected to obtain the services of a real estate professional who can aggressively market the property.
    2. Pre-Foreclosure Sale or Short Payoff: If the property's sales value is not enough to pay the loan in full, your lender may be able to accept less than the full amount owed. This option can also include a period of time to allow your real estate agent to market the property and find a qualified buyer. Monetary help may also be available to pay other lien holders and/or help toward paying a few moving costs.
    3. Assumption: A qualified buyer may be allowed to assume your mortgage, even if your original loan documents state that it is non-assumable.
    4. Deed-in-lieu: Your lender may agree to allow you to voluntarily "give back" your property and forgive the debt. Although this option sounds like the easiest way out for you, generally, you must attempt to sell the home for its fair market value for at least 90 days before the lender will consider this option. Also, this option may not be available if you have other liens such as judgments of other creditors, second mortgages, and IRS or State Tax liens.

If you’d like to discuss your current situation and would like help determining the next best step for your family and yourself, please give us a call at 315-671-5478 or email us at info@hodgkinsandohara.com. This is a complimentary, no obligation service we provide and we’re happy to help in anyway we can.

FAQ: Our Clients Common Questions

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