Central Ohio Real Estate

Options for a Central Ohio Homeowners' When Facing Foreclosure

1. Re-instatement – All the way up to the day of the court house sale you have the right to catch up all the payments in arrears and stop foreclosure. The payment would include all months behind in payments, late fees and court costs.

2. Forbearance or Re-payment plan – Negotiate a repayment plan with your mortgage company to catch up all the payments in arrears, including late fees and court costs. The Forbearance is paid in smaller payments over time instead of one lump sum.

3. Refinance – If current rates are lower than your present mortgage rate and your credit has not been too badly damaged, you can refinance to a lower interest rate and reduce your total monthly payment.

4. Rent – Renting the home so someone else makes your mortgage payment not only reduces your immediate stress, it also gives you a good future investment.

5. Sell – If you have equity in the property it is always best to sell the home instead of losing it to foreclosure and damaging your credit and financial future. We can help you determine fair market value for your home and calculate your net proceeds after the sale. Contact your mortgage company to get the payoff for all of your mortgages before this meeting so the calculations are accurate.

6. Mortgage Modification – Banks do not want to own real estate, which is exactly what happens when they foreclose. After foreclosure, they have to pay the taxes, insurance, yard and house maintenance, utilities, asset managers, Realtors, attorneys and property maintenance until it can be sold. Call your mortgage company to ask if they would be willing to reduce your monthly payment to something more affordable for you.

7. Short –Refi - Also known as the Government’s HOPE Program. This relatively new phenomenon shows just how far some mortgage companies and lenders are going to avoid foreclosing on properties. This process involves the refinance of a home with a reduction in the principal balance and often the interest rate as well.

8. Service Members Civil Relief Act (SCRA) The SCRA is a bill that was signed into law on December 19th 2003. This law provides certain protection to military personnel. The law also provides Service members other protections.

9. Deed in Lieu of Foreclosure – This where the homeowner essentially gives the deed back to the mortgage company. This action prevents the banks from having to go through a lengthy foreclosure process. They still report a Deed-in-Lieu as a foreclosure on your credit report.  However, they may waive their rights to a deficiency judgment because of your cooperation. You are still subject to taxation and this solution only works in cases where there is one mortgage and there are no liens on the property.

10. Bankruptcy – Hire an attorney for a fee to file chapters, 7, 11 or 13 taking all or part of your debt to the courts to be dismissed. A bankruptcy delays foreclosure, but ultimately you end up with a bankruptcy and a foreclosure on your credit report. Many people believe when they file bankruptcy all of their problems go away. The fact is, creditors can still file a deficiency judgment and you may have serious tax consequences.

11. Short Sale – A homeowner is ‘short’ when you owe an amount on your property that when combined with closing costs and commissions is higher than current market value.