Know Your Pre-Foreclosure Options
"Options that Your Bank Says they offer, often don't help homeowners in the long run."

The # 1 thing banks look at to determine if they will modify your loan is income.

Did you know, that there are generally only five (5) options banks may choose to offer you without litigation... and that depends on the personality of your bank's representative and how they feel that day. Many times the Loss Mitigation rep forgets or plain lies to you over the phone... (Watch this Testimonial from a Loss Mitigation Rep)


Know your Budget, the Foreclosed Value of your Home/Business and that you are willing to do what it takes including going to Credit and/or Bankruptcy Counseling.

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Loan Modification/ Renegotiation
Loan modification often does not work and leaves the home owner in a debt worth more than their home.  That is, you may owe $150k for a home only worth $70k; however out of the options banks offer this is usually the most favorable option to keep you in your home long-term.

A loan modification is where the lender may change your interest rate or term of the loan; but because many loans have been sold and resold to other institutions, most servicers do not like to change the terms of the loan due to their contract with the investors. Often, the servicer doesn't even tell the investor about your situation, and to qualify for this plan, you must make an initial payment that is often too high for homeowners to afford.

Forbearance Agreement
Forbearance agreements most often delay the inevitable.  This is where you get the bank to "Not take action" to take your property. While it may keep the banks off your back for a number of months, most homeowners find themselves at the end of the agreed forbearance period with the same problem. This is one of the actions you can pursue if you choose to short sell the home or there was a temporary hardship.

Repayment Plan
Many lenders offer this option to homeowners who ask for assistance. This is where the bank agrees to take your delinquent amount and spread it over a period of time to bring you current. However, the reality is that due to financial difficulty, many homeowners cannot afford to pay their current monthly mortgage much less add an additional amount to it. Often the new monthly payments are hundreds of dollars more and within a few months the home owners find themselves in the same situation.

Short Sale/ Settlement Negotiation
Most often, when clients are past due a number of months and are just not able to afford the home, lenders may recommend a short-sale. This is where the bank agrees to accept a settlement on your mortgage balance that is below your current loan balance.

Deed in Lieu (Keys for Cash)
Signing over your house voluntarily to the bank - displacing your family and any current/future equity potential in the home. "Often with the assistance of an attorney, you are able to negotiate favorable terms that will allow your family to stay in your home."