Foreclosure solutions and options for Katy Texas homeowners.
Reinstatement is when the homeowner requests the amount owed on the mortgage and pays the amount in full to bring the note current.
Forbearance or Repayment involves negotiating a deal with the mortgage lender to allow for some type of deferred payment plan which will eventually bring the note current.
Mortgage Modification can involve a reduction on the principal loan balance, interest rate, terms, or any combination of items, usually resulting in a lower monthly mortgage payment. Visit the Making Home Affordable program to view mortgage modification eligibility requirements.
Deed in Lieu of Foreclosure, sometimes referred to as a "friendly foreclosure" occurs when the homeowner returns the property to the lender to avoid the foreclosure process. The owner must receive approval from the lender and agree to vacate the property.
Bankruptcy is often the choice of last resort, particularly when the homeowner also has excessive non-mortgage debts creating financial hardship. Bankruptcy will only stall, not stop the foreclosure process.
Renting or Leasing the property can sometimes be an option, assuming the mortgage is current and rental income is sufficient to pay the mortgage going forward.
Refinancing is an option for owners with sufficient equity and good credit.
Selling the Property is an obvious option for homeowners with sufficient equity. If the home is worth more than the outstanding loan balance, listing with a qualified Realtor can usually solve the problem.
Short Sale transactions are more commonly a homeowner's last line of defense in preventing foreclosure. If the homeowner owes more on the property than its market value, a qualified Realtor can work with the lender and homeowner to sell the property at a loss.
Warning! Before you pursue a short sale or modification watch this video to see how banks are profiting from short sales, after they took billions of dollars (yours and mine!) from the federal government. I do not recommend short sales because of this. Walking away from your home is a difficult decision, and only you know what's best for you and your family.
Click here for free local resources and information if you are a distressed homeowner in the Houston area.