If you or someone you know needs help – I’m here.  Call/email anytime at 703-403-0536 or patrick@patrickduffyrealtor.com.

If you or someone you know is getting ready buy a home or refinance, I highly recommend Ryan as your loan officer.

Click here to check out the broadcast!

The other major drawback to bankruptcy is that it makes it very difficult for the homeowner to sell his property once he enters the process.  It makes it near impossible to negotiate a short sale.  The only possibility is if the trustee of the bankruptcy agrees to release the property from the proceedings and allow it to be sold.

Certified Distressed Property Institute, LLC, 2008

Links:

Bankruptcy: http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html

Short Sale: http://homebuying.about.com/od/glossarys/g/ShortSale.htm

This solution often only works when there is only one bank holding a note on the property and there are no significant junior liens on the property.  If the homeowner has equity, this is usually not a good route to take.  Why forfeit your right to that hard earned equity?

As with other foreclosure alternatives, the bank will only accept a DIL if you cannot make your mortgage payments.  Also like the other alternatives, it is often less damaging to your credit than a foreclosure.  Keep in mind, the bank will not present this as an option to you because this has to be done by you voluntarily.  To maximize your chances of your lender accepting a DIL, do not wait too long – approaching them one week before the home is to be auctioned will often not work.

If you or someone you know is falling behind on their mortgage, please call me at 703-403-0536 or email me at patrick@patrickduffyrealtor.com.  I’m here to help!

Links:

Deed-in-Lieu of Foreclosure: http://banking.about.com/od/loans/g/deedinlieu.htm

Deficiency Judgment: http://dictionary.reference.com/browse/deficiency+judgment

To obtain a Loan Modification, the homeowner must exhibit a verifiable hardship that makes it impossible for them to make the payments on the current terms of their mortgage.  The hardship could be one or more of many things such as job loss, illness, death, payment increase due to interest rate adjustment, etc.  Much like when the homeowner applied for their mortgage, they will apply for the modification and supply the lender with needed documentation to substantiate their case for the need of a loan modification.

Once initially approved, the lender will place the homeowner on a trial modification (trials periods can range from 3-6 months) in which the homeowner will have their payment reduced and will have to exhibit that they will be able to make the payment.   After the successful completion of the trial period the modification will be fully reviewed and either granted or denied.

This was a brief overview of what a Loan Modification is and the process involved.  If you would like to pursue a Loan Modification, I urge you to do some research.  As always, I am here to help you with alternatives to foreclosure at phone: 703-403-0536 or email: patrick@patrickduffyrealtor.com.

Links:

Forum with over 20,ooo members, sharing their loan modification stories (successes and failures) – http://www.loansafe.org

Information about President Obama’s  loan modification plan – http://www.usnews.com/money/personal-finance/real-estate/articles/2009/03/04/obamas-loan-modification-plan-7-things-you-need-to-know.html

Making Home Affordable Homepage – http://makinghomeaffordable.gov

In some cases the lender will tack the missed payment and fees onto the end of the scheduled loan amortization, however it is much more likely to be given a period of time in which to pay the delinquencies.  Forbearance will often require income documentation from the homeowner showing that they have the wherewithal to comply with the terms of the repayment plan.

Forbearance Example
Homeowner misses four payments on a $2000 per month mortgage and the foreclosure process has been started.

Reinstatement Amount

The lender allows payments to be broken up over the next 12 months:

Once the homeowner completes the 12th repayment, the mortgage would go back to its original amount.

NOTE: a mortgage will not be fully reinstated until the payments are made in full.  If the homeowner misses just one payment along the way, they can end up in the same stage of the foreclosure process they were in prior to the forbearance plan.

If you or someone you know is falling behind on their mortgage, please contact me at 703-403-0536 / patrick@patrickduffyrealtor.com.  Additional foreclosure information can be found at www.NorthernVaShortSaleHelp.com.

To have your mortgage reinstated, you quite simply have to pay the lender what they’re owed to bring you current.  In order to due this, you will contact your lender and request the amount needed in the form of a reinstatement letter.  Keep in mind this letter often is time sensitive, usually requiring the full amount in one payment within 3o days.

Once reinstated, go ahead and keep making those payments.

Reinstatement Example
Homeowner misses four payments on a $2000 per month mortgage and the foreclosure process has been started.

Reinstatement Amount

As you can see, this option will often require a sizable lump sum payment.  Due to the difficulty of coming up with that payment, other options may need to be explored – which will be covered in the coming days.  The next foreclosure avoidance option in my series of posts will be Forbearance.

If you or someone you know is falling behind on their mortgage, please contact me at 703-403-0536 / patrick@patrickduffyrealtor.com.  Additional foreclosure information can be found at www.NorthernVaShortSaleHelp.com.

1. Reinstatement
2. Forbearance or Repayment Plan
3. Mortgage Loan Modification
4. Deed in Lieu of Foreclosure
5. Bankruptcy
6. Service Members Civil Relief Act
7. Sell the Property
8. Short Sale

Please visit my blog over the coming days to read more about these alternatives.  As a Certified Distressed Property Expert, I am trained to handle this most difficult of situations, homeowners facing foreclosure.  You are not alone and I am here to help you.  In the meantime, feel free to call or email me anytime at 703-403-0536 / patrick@patrickduffyrealtor.com.  A wealth of foreclosure resources can also be found at www.NorthernVaShortSaleHelp.com.

Maximize Exposure

It takes more than just sticking a “for sale” sign in the front yard to get the right people to see your home. It is very unlikely that you will sell your Woodbridge home to a neighbor, or anyone in the neighborhood just driving by. It can happen, but that group is very limited. For sale signs help, but they don’t usually sell the home on their own.

It’s important to advertise in as many places and as many ways as possible including on the internet, in homes magazines and in the local MLS (Multiple Listing Service).

Know Your Buyer

The next thing that is complicated for an individual selling their own Woodbridge home is knowing which buyers are looking in earnest, which are just being nosey, and which have the ability to actual make good on an offer.

Along with exposure this is one of the biggest reasons FSBO sellers often end up turning to a good real estate agent. They have the ability to make sure buyers who come to view your home are ready, willing and most of all able to make a purchase.

If you would like more tips on selling your home “by owner,” subscribe to this blog. It’s free, fast and easy.

LINKS:

Advertise: http://homebuying.about.com/od/sellingahouse/qt/092007_HomeAds.htm

MLS: http://www.investordictionary.com/definition/multiple+listing+service.aspx

real estate agent: http://homebuying.about.com/cs/agencies/a/realestate.htm