I am reposting this article word for word that I got from Steve Nimmer here at Coldwell Banker Mortgage. (912) 604-3834 NMLS #: 186680.
Even though the recovery is over and people are getting rich in real estate(Flip That House Now! radio ads are playing again) there are plenty ofhome owners bank borrowers that are still struggling. And for some reason I sense there is a kind of stigma against them now that it is common knowledge that the recession is over.
So, here is Steve's article to help you out.
Since September 2008, the industry has seen some 4.5 million foreclosures completed, according to the June 2013 CoreLogic® National Foreclosure Report. And while those numbers have been coming down, it is still important that borrowers and homeowners understand what they can do to prevent foreclosure.
That means taking action at the first sign of trouble, such as the first time a homeowner makes a late payment or misses a payment altogether.
1. Analyze the cause
Was the payment late because the borrower had an unexpected expense, like a car repair or a medical bill? Or is the problem due to a job loss, disability or serious illness that could affect income for an indefinite period of time? The answers to these questions can help determine the best next steps.
2. Understand the foreclosure timeline
For most mortgages, a payment made one to 14 days late falls within a grace period. Payments 15 to 30 days late incur a late fee, which must be included at the time of payment. After 30 days, missed payments impact the borrower's credit score. Foreclosure procedures usually begin after four missed payments.
3. Optimize cash flow
Regardless of the scenario, it may be helpful for borrowers to revisit their budget and consider trimming extras like eating out, entertainment and other discretionary spending. It may also be necessary to generate additional income through part-time work or a second job.
4. Make a full payment – including late fees
A partial payment is usually credited as a principal reduction, not a regular mortgage payment. It's better to make a full payment, including any late fees, as soon as the money is available.
5. Communicate with their lender
The lender can help determine whether the borrower is eligible for any of several alternatives to foreclosure, such as refinancing or loan modifications. Even if the mortgage amount is more than the home is worth, the lender may be willing to accept a short sale or a deed-in-lieu of foreclosure.
The bottom line
A willingness to step back and assess the financial situation, take positive action to address shortfalls and work with the lender can go a long way toward helping borrowers avoid becoming foreclosure statistics.
Sources:
CoreLogic® National Foreclosure Report, June 2013
Freddie Mac: Alternatives to Foreclosure
7 Steps to Avoid Foreclosure by Tara-Nicholle Nelson, Esq.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999
Even though the recovery is over and people are getting rich in real estate(Flip That House Now! radio ads are playing again) there are plenty of
So, here is Steve's article to help you out.
Since September 2008, the industry has seen some 4.5 million foreclosures completed, according to the June 2013 CoreLogic® National Foreclosure Report. And while those numbers have been coming down, it is still important that borrowers and homeowners understand what they can do to prevent foreclosure.
That means taking action at the first sign of trouble, such as the first time a homeowner makes a late payment or misses a payment altogether.
1. Analyze the cause
Was the payment late because the borrower had an unexpected expense, like a car repair or a medical bill? Or is the problem due to a job loss, disability or serious illness that could affect income for an indefinite period of time? The answers to these questions can help determine the best next steps.
2. Understand the foreclosure timeline
For most mortgages, a payment made one to 14 days late falls within a grace period. Payments 15 to 30 days late incur a late fee, which must be included at the time of payment. After 30 days, missed payments impact the borrower's credit score. Foreclosure procedures usually begin after four missed payments.
3. Optimize cash flow
Regardless of the scenario, it may be helpful for borrowers to revisit their budget and consider trimming extras like eating out, entertainment and other discretionary spending. It may also be necessary to generate additional income through part-time work or a second job.
4. Make a full payment – including late fees
A partial payment is usually credited as a principal reduction, not a regular mortgage payment. It's better to make a full payment, including any late fees, as soon as the money is available.
5. Communicate with their lender
The lender can help determine whether the borrower is eligible for any of several alternatives to foreclosure, such as refinancing or loan modifications. Even if the mortgage amount is more than the home is worth, the lender may be willing to accept a short sale or a deed-in-lieu of foreclosure.
The bottom line
A willingness to step back and assess the financial situation, take positive action to address shortfalls and work with the lender can go a long way toward helping borrowers avoid becoming foreclosure statistics.
Sources:
CoreLogic® National Foreclosure Report, June 2013
Freddie Mac: Alternatives to Foreclosure
7 Steps to Avoid Foreclosure by Tara-Nicholle Nelson, Esq.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999
