Avoiding Foreclosure?

If you are at risk of default or have defaulted on your mortgage and believe that foreclosure is your only solution to mounting mortgage problems, there are actually many options available for you.

If you stop paying your mortgage, you could lose your home and damage your credit rating!

Please contact me at (928) 607-1813 to learn more about your options.

Refinance

If you are current with your mortgage payments, you may be able to take advantage of today's mortgage rates and keep your home by refinanceing to a 30 or 15 year fixed rate loan via Home Affordable Refinance, a component of the Making Home Affordable initiative launched in early 2009.

To qualify, your home must be owner-occupied and is a one - to four unit home. Your existing mortgage must be owned or backed by Fannie Mae or Freddie Mac and Loan-to-value ratio is above 80% but not more than 125%. You must be current on existing mortgage payments and have enough income to support new mortgage payments. For more infomation please visit http://makinghomeaffordable.gov/

Sell and Bring Cash to Closing

You may not have the necessary cash to cure deficiencies at closing, if you have other assets, you may have to liquidate them, e.g. US Treasury bonds, individual retirement accounts. By curing deficiencies at closing, you can avoid the credit damage that a short sale or foreclosure can cause. However, you are strongly encouraged to consult with your finance and tax professionals before bringing liquid assets to closing.

Lender Workout

Lenders often will work with you to help them keep your home by reducing or rolling back interest rates, forgiving back payments, adding them to the loan amount, or possibly recasting the entire loan and wrapping all fees into a fixed-rate mortgage. Your options can be forbearance, reinstatement, repaymnet plan, loan modification, or sign over the property to the lender in exchange for debt forgiveness.

Short Sale

Short sales are considered preferable to foreclosures because short sales lessen the impact a foreclosure can have on the surrounding community and won't damage your credit as much as a foreclosure.

Deed in Lieu of Foreclosure

A deed in lieu of foreclosure occurs when you agree to trade your propery to the lender in exchange for the cancellation of the note. This foreclosure alternative is more likely to work in states where there is a long foreclosure timeline. The lender will be able to get the property much sooner than going through the foreclosure process, which lessens the probability of the property being in disrepair as well as eliminate the lenders costs to foreclose. Foreclosure If you are only weeks away from the foreclosure sale taking place, you may not be able to pursue any of the previous options, including a short sale. In some situations, foreclosure may even be in the best interest for you, although doing so will wreak the most damage to your credit. 

Russ Lyon Sotheby's International Realty and its agents is not associated with the government, and our service is not approved by the government or your lender; and even if you accept this offer and use our service, your lender may not agree to change your loan.

For more information:

Tips for Avoiding Foreclosure (HUD): www.hud.gov/foreclosure/index.cfm

The Foreclosure “Rescue” Racket (Business Week): www.businessweek.com/magazine/content/07_26/b4040041.htm

Credit Counseling & Debtor Education (US Department of Justice): www.usdoj.gov/ust/eo/bapcpa/ccde/

Hope Now: www.hopenow.com Neighbor Works America: www.nw.org/network/home.asp

Homeownership Preservation Foundation: www.995hope.org

My Money Management: www.MyMoneyManagement.net

AZ Law Help: www.azlawhelp.org

Flagstaff Home Listings:

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