There are so many options out there is you are struggling with paying your mortgage:

1. Loan Modification

I have written many blog posts about loan modifications and there is a ton of information out there about them. This is an option for you whether or not you are qualified under the MHA. Most banks have their own internal loan modification program, if you do not qualify for the MHA.

2. Refinance

Qualifying for a refinance is your biggest obstacle here. If your house has some equity in it, you want to talk to a licensed mortgage broker or your bank about the possibility of refinancing. Refinancing does have costs associated with it; however, with interest rates as low as they are, the costs may be worth it. You will also need to have a good credit score (620 or higher).

3. Streamlined Refinance

A Streamlined Refinance is a refinance of your existing loan with the same lender and the costs are significantly lower than in a traditional refinance.

4. Deed-in-Lieu of Foreclosure

If you are already behind on your mortgage, a deed-in-lieu of foreclosure may be an option. Under this option, you will need to contact your bank and determine if they are willing to take back the house.  You will turn over the deed back to them. The banks are sometimes willing to do this to avoid the foreclosure process and the fees that are associated with it. There is some negotiating that will have to be done here. You want to make sure that the bank releases you from the mortgage and any deficiencies. You do not want to turn your house back over to the bank to then find out that you still owe the balance of the mortgage.

5. Short Sale

A Short Sale is where you sell your house for less than you owe on it, pending approval of the bank. You will need an attorney to negotiate the short sale for you but here, there is also the opportunity to make sure that you do not owe anything to the bank. Your attorney should be able to help you negotiate this and make sure that any deficiencies in the sale price and mortgage amount are “wiped” away.

6. Cash for Keys

Some banks are now offering a program called “Cash For Keys.” This is a program where the bank pays you to move out of your home.  You are released from the mortgage and most of the time, any deficiencies between what you owe on the mortgage and what the bank sells the house for. Once again, all terms of this need to be negotiated before it is finalized.

There are so many options if you are in danger of losing your home.  Don’t just walk away. There are scams out there so you need to be careful, but you do have options.

Related Posts

1. Should I Stop Paying My Mortgage?

2. Streamlined Refinance As An Alternative to A Loan Modification

The best answer that I can give you is that the best way to speed up the time to get a loan modification decision is to make sure that the information you give to the bank is complete. Everytime that the bank has to request a document from you adds more time to them making a decision.

When you send your information to the bank, make sure that you have signed everything and send them everything that they have requested. (Every bank has a different set of requirements for documents that they want to see).  To see the requirements from some of the major banks, such as, Bank of America, Chase, Citibank, and One West Bank, check out their websites.

If the bank does request additional documents from you, make sure you get them to the bank in the time frame that they require. If they tell you that you have 10 days to get them your most recent bank statement, that means you have 10 days until they remove your file from their system. Once your file is removed from the system, you will have to begin the process again.

Remember, that every bank’s time frames vary, but if you give them all of the information they need from the beginning, you will have a better chance of getting a loan modification quickly.

Related Posts:

1. Loan Modification With Banks Not Participating In The MHA Act

2. The Top Five Loan Modification Myths!

The prospect of buying a home can be overwhelming.  I am going to help you through the process and give you a ton of valuable and usuable information in a format that will allow you to really analyze your decision to purchase to a home; encompassing everything from how to prepare yourself and your financials to finding the right help, finding the right home, finding the right financing and closing. 

7 Days to Owning A Home

Over the next 7 days, I will give you all of the information you need to prepare to purchase your largest investment…your home. Most people only go through the rigors of buying a home a few times in their life, I have been involved in thousands of transactions involving the purchase of a home. All of the information will help you to navigate your way through what can be a long and tedious process. You may even learn something about your preferences, finances and credit along the way.

Related Posts:

1. 7 Days To Owning A Home: Day 1 – Your Credit

2. 7 Days To Owning A Home – Day 2 Financials