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Archive for the ‘Foreclosure Information’ Category

Federal Program to Encourage Short Sales

From REALTOR Magazine, March 8, 2010

Beginning April 5, the Obama administration will encourage delinquent borrowers to avoid foreclosure and instead give up their homes in short sales by streamlining the process.

The program will offer a cash payment to the home owner, as well as to the servicer and second-lien holder; and protect borrowers from future lender lawsuits for the unpaid mortgage balance.

To curtail fraud, lenders will have to consult real estate practitioners to assess home value and minimum acceptable offer; they then must accept any offer that is equal to or higher than that.

Source: The New York Times, David Streitfeld (03/08/10)

© Copyright 2010 Information Inc.


Mortgage Loan Workout Options

In my last post we talked about options for homeowners who are having trouble making their mortgage payments and facing the possibility of foreclosure. Today I’ll go into a bit more detail about one of the options available – a loan workout program.

Let’s look at what’s available to get that mortgage back on track and save your home. Get more information here. Here are some terms you’ll want to know.

Forbearance – This is the process by which a lender allows a borrower to make partial payments or skip payments if they have a reasonable plan to catch up – such as a tax refund, a bonus, or a new job.

Reinstatement – Reinstatement occurs when all late payments are caught up and it usually occurs at the end of a forbearance period.

Repayment Plan – A plan is established to allow a borrower to make payments to catch up; the lender may allow payment of an additional amount each month until the delinquent payments are caught up.

Loan Modification – The lender may agree to amend the mortgage to avoid foreclosure. Options included adding all the missed payments to the loan amount and increasing the monthly payment to cover the larger loan; giving more years to pay off the loan, lowering the interest rate, and/or forgiving part of the loan to lower the monthly payments; switching from an adjustable rate mortgage to a fixed rate mortgage, so that the borrower is not exposed to increases in monthly payments; and/or requiring amounts for taxes and insurance to be included with monthly mortgage payments (escrowing) so that the borrower avoids large bills in addition to mortgage payments.

Deed in Lieu of Foreclosure – This is signing over the property to the lender in exchange for debt forgiveness.  WARNINGthis can hurt your credit but is better than having a foreclosure in a credit history.

Contact an attorney or accountant for advice if you’re considering any of these options.

For any San Antonio or Houston real estate needs that you, your family or your friends might have just send me an email. I’m always here to help with “Service Beyond Your Wildest Expectations!”

Know Someone Having Mortgage Trouble?

You hear about it everyday. People continue to have problems paying their mortgages. Maybe they’ve lost their jobs; maybe unexpected medical bills have taken a toll on their finances; or maybe they have one of those ARMs (adjustable rate mortgages) that now has adjusted them past their ability to pay.
Maybe it’s not them but you with the problem. Either way there is hope and I’ll be talking about what to do if you have the problem and give hope that there is a way out of the financial problem so you can stay in your home. But if that doesn’t work, I’ll tell about other options to hopefully save your credit and get you out of trouble in upcoming blog posts.
While the San Antonio real estate market has not been hit as hard as other areas, we do still have problems and there is still help available. If you need answers right away please contact me by email and I’ll be glad to answer your questions. Just email me at .


Refinance – Homeowners occupying a one to four unit home; with a Fannie Mae or Freddie Mac backed loan; with a loan-to-value (LTV) ratio above 80% but no more than 125%; and are current on existing mortgage payments and with enough income to support new mortgage payments MAY qualify to refinance their home. Contact HOPE NOW at to see if you qualify

Sell and Take Cash to Closing – Homeowner can avoid the credit damage of a short sale of foreclosure by selling their home and curing any deficiencies at closing if they have the assets to do so. Might this be your answer?

Lender Workout – Lenders often will work with distressed homeowners to help them keep their homes by reducing or rolling back interest rates, forgiving back payments, adding them to the loan amount, or possibly recasting the entire loan and wrapping all fees into a fixed-rate mortgage. Contact your lender and talk to them about it.

Short sale – A situation in which the seller (1) owes more money on the loan than the sale of the property will likely produce on the market and (2) is unable or unwilling to bring money to closing. The seller may or may not be in pre-foreclosure.

Deed in Lieu of Foreclosure – The homeowner signs over the property to the lender in exchange for debt forgiveness. Warning – this can hurt credit but is better than having a foreclosure in a credit history.

Foreclosure – The legal process by which a defaulted borrower is deprived of his or her interest in the mortgaged property.

Do nothing or walk away – Before considering this option a homeowner should definitely contact an attorney for advice.

Actually you should contact your attorney or accountant for advice if you’re considering any of these options.

Here’s another place to check out avoiding foreclosure. Available at:

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