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Foreclosure Alternatives
Avoid Foreclosure. Know your Options. Get the Help you need.
If you're like many distressed Southern Nevada homeowners, you may be dealing with a hardship that is temporary or more permanent but YOU HAVE OPTIONS OTHER THAN FORECLOSURE!
I have successfully helped Las Vegas area families through this process (View Testimonials)
Please visit the Free Resources page.
You will find helpful government resources to assist in avoiding foreclosure. This includes links to other programs and agencies, answers to some frequently asked questions and more.
After some homework, a homeowner can be overwhelmed with the choices available….
Allow my experience to benefit you by identifying unbiased options for your situation with a FREE Consultation. Call or email (Contact Me).
Amber Crawford
702-493-1700
B.S. Business Administration/ Marketing
National Association of Realtors
Short Sales and Foreclosure Resource Certified
Foreclosure Alternatives
Many American families probably wish the current U.S. housing market and financial crisis were a distant memory. The Great Recession hit Nevada harder than any other state and has caused stress and heartache for many families. The loss of a home to Foreclosure is one of the most devastating challenges that a family can face. There are alternatives to foreclosure. To follow is a brief explanation of these alternatives, citing the benefits and challenges.
Refinance
If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage. Challenge: In today’s current housing market many homeowners find that their home is worth less that what they owe, placing them in a negative equity position and ineligible for a for a refinance.
Reinstatement
The homeowner simply requests the total amount owed to the mortgage company to date and pays it by the date you both agree to. This solution does not require the lender’s approval and will reinstate a mortgage up to the day before the final foreclosure sale. Challenges: This option may be appropriate if the problem that caused you to become past due on your mortgage is temporary.
Forbearance (Repayment Plan)
To avoid foreclosure the lender and the borrower can make a special agreement called “forbearance” to allow a homeowner to repay back payments in a certain time period and the lender delays his right to exercise foreclosure. The borrower would make their current mortgage payment in addition to a portion of the back payments owed. This period and the payment plan depend on the details of the agreement that are accepted by both parties. Challenge is a homeowner needs to be in a financial position to pay not only their current mortgage, but also a portion of the back payments owed.
Mortgage or Loan Modification
By definition, a loan modification is a permanent change in the terms of your loan which allows it to be reinstated, and ideally results in a payment that you can afford. A loan modification is designed to prevent you from going into default, and in some cases, it will only provide you with a lower interest rate for a specified amount of time. The new agreement can involve a reduction of the interest rate, the term of the loan, the principal balance of the loan, or any combination of these. Challenges: The lender will often require a homeowner to be ‘eligible’ for the new payment and will usually require full documentation. Many factors affect a homeowner’s eligibility and in most cases the homeowner is best off by contacting a HUD approved counselor who will provide free assistance.
Rent the Property
If a mortgage payment is low enough that market rent will allow the mortgage to be paid, it may make sense to rent out your property. A homeowner can convert their property to a rental and use the rental income to pay the mortgage. Challenges: Consider that there may be periods in which you have no renter or when a tenant may skip one or two months of rent. Can you set up a reserve account to cover the unexpected expense? Often the rent collected does not cover the full cost of property ownership and maintenance.
Deed in Lieu of Foreclosure
A deed in lieu of Foreclosure is a voluntary process that allows the homeowner to transfer ownership of the property to the Lender rather than go through the foreclosure process. A Lender can refuse to accept a deed in lieu of foreclosure, often requiring that a homeowner put the home on the market for a determined period of time in good faith to sell the home. In some situations (HAFA) the Lender will forego their rights to a deficiency judgment. Challenges: A deed in lieu may be reported to the credit bureaus as a foreclosure.
Bankruptcy
While Bankruptcy can be a remedy for insolvency, alone it is not a cure for foreclosure. A personal bankruptcy may postpone, not stop, the foreclosure process. In some bankruptcies, the homeowner may be allowed a repayment plan. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this could be a viable alternative. Challenges: Bankruptcy can be costly in ways that you haven’t considered. You may be forced to liquidate property you didn’t intend to lose. Bankruptcy can only be used once every seven years.
Servicemembers Civil Relief Act (active duty military personnel)
While protecting the United States, some servicemen and servicewomen may face difficulty in meeting certain financial obligations at home, such as rent or mortgage payments. The provisions of the SCRA apply to active duty military personnel who had a mortgage obligation prior to enlistment or prior to being ordered to active duty. If the servicemember is having financial hardship, they may qualify for relief under the Servicemembers Civil Relief Act. If qualified, the member may obtain a reduction on all consumer debt in addition to mortgage payments. Military personnel should learn about the SCRA and the protections and benefits it provides for themselves and their families.
Short Sale
A Short Sale is a special transaction that allows a homeowner to avoid foreclosure by selling their property for an amount less than the amount necessary to pay off your mortgage loan. In order to qualify or get the lender to agree to a short sale a homeowner must document some genuine financial distress or forced relocation. Not all lenders will accept short sales or discounted payoffs, but more often the lender agrees to the short sale because they know if they take the property back they will often incur an even greater loss. A short sale will allow a homeowner to avoid foreclosure and keep it off their public record history, and in some cases allow the owner to avoid a deficiency judgment. Borrower may qualify for another mortgage in as little as 24 months.
Challenges: Short sales are complex and can take several weeks to months before a lender and a homeowner can agree on acceptable terms. Many lenders have layers of bureaucracy to maneuver to get the short sale approved. A homeowner is best served by choosing a qualified real estate agent that can guide the way and make the process easier to understand and navigate.
Under the Mortgage Forgiveness Debt Relief Act of 2007, the forgiven debt on your primary residence may be excluded from income when calculating the federal taxes you owe, but it still must be reported on your federal tax return. For more information, see www.irs.gov , and consider consulting a financial advisor, accountant, or attorney.
Please call to discuss your options-- allow my experience to benefit you-- the consultation is free. If short selling your home is the best option- You pay nothing; your lender pays us to help you fix this problem! As a certified Short Sales and Foreclosure Resource Specialist and as a Realtor with over a decade of real local experience, I am ready to identify all possible options and make the best recommendations for your unique situation.
The road to recovery is here…
Please call for a free consultation with Amber Crawford today (702) 493-1700.
Amber Crawford
702-493-1700
B.S. Business Administration/ Marketing
National Association of Realtors
Short Sales and Foreclosure Resource Certified
The information contained in this site is for informational purpose only. It is recommended that individuals considering a Short Sale, Foreclosure, Deed-In-Lieu, or Loan Modification seek independent legal and tax counsel regarding your particular situation and your rights as a homeowner.
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