Portland Oregon Loan Modifications. Portland Oregon HARP Gov't Refinance Program. Portland Oregon Short Sales. Three FREE Options For Portland Oregon Area Owners Who Owe More Than Their Home Is Worth.
Tough times fall on good people every single day. I know that slipping toward foreclosure can lead to feelings of anxiety, depression, and loss of self-esteem. Many people in this situation often feel overwhelmed and resigned and are on the verge of giving up. Please do not give up. If you’re in default (or about to be in default) on your home mortgage and facing foreclosure, it's important for you to know that you've got alternatives.
As a experienced Broker and Certified Distressed Property Expert (CDPE), I'm specially trained to help Portland Oregon distressed homeowners navigate through their alternatives to foreclosure.
There are options that can help many people stay in their home if they so desire. There is also an option to sell the home for less than owed, also known as a “short sale”.
Right now you can also get a FREE copy of my book, The Homeowner's Guide to Real Estate Short Sales. This easy-to-understand, step-by-step instruction guide describes how banks operate in the negotiation process and also includes the tools and forms required to short sell your home or investment property.
Here’s a quick summary of some of the solutions available to homeowners facing foreclosure:
1. Short Sale: A short sale allows the homeowner to avoid foreclosure, minimize financial damage and move on from a burdensome, unaffordable mortgage. In many cases, a short sale allows the borrower to qualify for a new mortgage in just 24 months, as opposed to five years or more after a foreclosure. Please be sure to download my free eBook, "The Homeowner's Guide to Real Estate Short Sales"
2. Reinstatement: A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult for homeowners to achieve. The homeowner simply pays the total amount past due (including late fees) to the lender. This solution does not require the lender’s approval and will “reinstate” a mortgage up to the day before the foreclosure sale.
3. Forbearance or Repayment Plan: A forbearance or repayment plan involves negotiating with the mortgage company to allow the homeowner to repay back-payments over a period of time. The homeowner typically makes current mortgage payments in addition to a portion of the back-payments owed. This option requires lender approval.
4. Mortgage Modification: A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These changes require lender approval and typically result in a lower payment for the homeowner and a more affordable mortgage.
5. Rent the Property: This option does not require lender approval, but does require the homeowner’s ability to rent the house for enough money to cover the monthly mortgage payment. It is important to remember that there may be unexpected costs associated with the maintenance of a rental property in addition to the monthly mortgage payments. Homeowners should take this into consideration when deciding whether this option will work for them.
6. Deed-in Lieu of Foreclosure: Also known as a “friendly foreclosure,” a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property. Deed-in-lieu can potentially lessen the damage to a credit score and future loan eligibility, and sometimes the lender will forgo their right to pursue a deficiency judgment, meaning the homeowner will not be responsible for further payments.
7. Bankruptcy: Many have considered and marketed bankruptcy as a “foreclosure solution,” but this is only true in some states and situations. This does not require lender approval, but you must have non-mortgage debts that you claim as a hardship. Entering bankruptcy can be a risky and costly process. Be sure to seek the advice of a qualified bankruptcy attorney when pursuing this as an option.
8. Refinance: As opposed to mortgage modification, refinancing means you will be acquiring a new loan based on your current credit standing. If you have already missed mortgage payments, your credit score may make it difficult to find a loan with cheaper payments.
9. Servicemembers Civil Relief Act: If a member of the military is experiencing financial distress due to deployment—and that person can show that the debt was entered into prior to deployment—he or she may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers to help qualify them for this relief.
10. Sell the property: Homeowners with sufficient equity can list their property with a qualified agent who understands the foreclosure process in their area. Unfortunately, many homeowners in today’s market have experienced a decline in home value and may owe more than what the home is worth.
I have assembled this website to provide you valuable information regarding all your options. When you are on the edge, you have no time to waste. I want you to call me today. I’m here to lend a hand.
Broker, CDPE, SFR, CNE
Windermere Cronin & Caplan Realty Group, Inc.
2424 SW Vista Ave
Portland, OR 97201