9 FORECLOSURE RELIEF OPTIONS
1. Forbearance - an agreement with the lender that temporarily allows the homeowner to pay less than the full amount of their mortgage payment, or perhaps even nothing at all, during the "forbearance period."
2. Reinstatement - occurs when the homeowner pays the lender the total amount they are behind in a lump sum, by a specific time in the future.
3. Repayment plan - is an agreement with the lender that gives the homeowner a fixed amount of time to repay the amount they are behind.
4. Loan Modification - is a written agreement between the lender and the homeowner that permanently changes one or more of the original terms of the note.
5. Refinance - Refinancing requires income, credit and equity to support a new mortgage or deed of trust.
6. Short-Refi - This is the latest trend for lenders in working with delinquent borrowers to avoid foreclosure.
7. Bankruptcy - A bankruptcy may allow the homeowner to discharge some debt and reorganize others to keep the property, however, if the homeowners don't or can't make the house payment after the bankruptcy, the home is foreclosed on anyway.
8. Short Sale - If the sale proceeds are less than the total amount owned to the lender, the lender (s) may agree to a short payoff or "short sale" and write off the portion of homeowner's mortgage that exceeds the net proceeds from the sale.
9. Deed-in-lieu of Foreclosure - If the homeowner agrees to voluntarily transfer title of the property to the lender in exchange for cancellation of their mortgage debt, the lender may agree to a deed-in-lieu of foreclosure.
