Nora McDonald
Sandhills Area Foreclosures
Bank Owned Property Sales & Short Sales
Nora McDonald

Seller Alternatives To Foreclosure


 

 

Payoff/Refinance –Completely paying off the entire loan amount plus any default amount and fees.

Partial Claim –

A loan from the lender for a second loan to include back payments, costs and fees.

 Disscuss all the above with your lender.

Banks generally require the home be well maintained, all mortgage payments and taxes must be

current. Most loan applications ask if this has ever happened.

Deed in Lieu of Foreclosure –Give the property back to the bank instead of the bank foreclosing.

Bankruptcy – Contact NC Attorney for details.

Chapter 7 (Liquidation) To completely settle personal debt.

Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3 – 5 years.

Chapter 11 (Business Reorganization) A business debt solution.

Sale –

property has equity (money left over after all loans and monetary encumbrances are paid), the

homeowner will get cash from the sale. At the other end of the spectrum, a short sale, also known as

a pre-foreclosure sale, can be negotiated with your lender by your real estate professional if what is

owed is more than the property’s value.

Usually accomplished through a refinance of the debt. New debt is at a normally higher interest rate

and there may be a prepayment penalty because of the recent default. With this option, there should

be equity in the home.

 

  Reinstatement –

missed payments and fees.

 

 Loan Modification –

terms of the loan. This may allow the homeowner to catch up at a more affordable level if they qualify.

Forbearance –

financial situation. The lender may even be able to provide a temporary payment reduction or

suspension of payments. Information will be required from the lender to show that you are able to

meet the new payment plan requirements.


UPSIDE DOWN?


* Late Mortgage Payments *

* Divorce *

* Medical Bills *

* Credit Card Debt *

* Loss of Income *

* Job Relocation *

* Lifestyle Change *

I Can Sell Your Home- No Equity is OK!

 

Community Housing Center

910-246-0600

 


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