Homeowner Default Options

• Sell- Consider selling it yourself or hire a realtor. You will not only need a fast sale but a fast closing. Although that can be hard to accomplish, it is still worth trying.

• Refinance- If you are not already behind on payments, you can try to refinancing your house.  This should be the first thing you do after a loss in income because if you get behind on payments your credit will not qualify you for a refinance. The only exception would be if your are behind in payments, but you have 65 percent or more loan to value of your house. 

• Special Payment Arrangements- Contact your lender about special payment arrangements.  You might bring in a large sum two months mortgage and catch up the rest over an agreed period of time.

• Forbearance Plan- A lender would reduce monthly payment for a short period and put shortage amount on the back end of the loan. Usually done with death, terminal illness, serious health problems or disability. They do want all payments to that date paid on time and current to be able to use this option.

• Deed in Lieu- You deed the property back to lender and which reduces there attorney’s fees to complete the foreclosure and your done.  It looks just as bad as a traditional foreclosure on a credit report and does nothing for the homeowner.

• Sell Now- Selling it to an investor can close you out quickly.  This will protect your credit being damaged and you can avoid foreclosure.  Foreclosure is consider by lenders the worst thing for credit and can influence much of your future credit needs for years to come.  

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