Repayment or Forbearance:
The owner of the home negotiates with his/her lender to see if a repayment plan can be worked out. Typically the owner will need to pay the current month’s payment as well as part of the late payments, then the rest will be paid per the repayment plan.
Loan Modification:
It is often difficult for the owner to get the bank to negotiate the terms of the loan. The goal is to obtain a reduction in the monthly mortgage payment by reducing the loan balance or interest rate or the terms of the loan. The homeowner has to qualify for the loan.
Another option is renting your home:
One option is find a good tenant for your home and use the income from rent to pay your mortgage payments.
The Deed in Lieu:
Rather than going through the process of foreclosure, the owner can return the home to the mortgage company with approval from the lender. The property will need to be vacated.
If you are in the military (active) there are some other options. There is an attorney network that works with active military who have financial hardships because of deployment and the debt had to occur before deployment.
Selling the home
Difficult to do unless you have enough equity to sell otherwise the owner will need to bring money to the closing.
Short sale:
There a several positives about doing a short sale, it allows the owner to sell the home, avoid foreclosure and is better for your credit rating.
See your options: Go to www.OptionsandReports.com (click resources for all the reports).
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