 | FAQ’s – Frequently Asked Questions |
What is a mortgage default?
A mortgage is considered to be in default when one or more monthly payments have been missed.
What solutions are available if I am in default on my mortgage payments?
You may qualify for a broad range of help. Some solutions are:
· Short Sale/Payoff
· Forbearance Agreement
· Loan Modification / rate and term adjustment
· Deed in Lieu of foreclosure What is a Short Sale/Payoff?
Short Sales occur when borrowers sell their properties for amounts that are less than the amount owed to the lender.
How do I qualify for this?
Borrowers need to prove that they are experiencing a substantial financial hardship. What is a Hardship?
A hardship is a situation that has a life changing effect for the borrower that results in an in-ability to pay the mortgage debt in either, short or long term. Some examples are:
· Separation or Divorce
· Medical Bills
· Inability to work due to health reasons
· Death of Spouse
· Job Relocation
· Reduced Income or Unemployment
· Business Failure
Bad loan product / excessive rate adjustment How do I qualify for this?
Contact us today and schedule a consultation with us about the most suitable solution. How do I qualify for a Short Sale?
A borrower must prove that a hardship exists. The lender must be willing to accept the short sale proceeds as full settlement of the debt. What is required from the property owner?
The property owner in most cases must:
• Sign a listing agreement with the realtor
• List the property for sale
• Cooperate with access, showings, offers, and with the realtor and SSW.
• Vacate the home following close of title • Agree not to finance or otherwise encumber the property
• Be responsible to maintain the home in "show" condition
• Be responsible for minor repairs to the home • Provide financial statement and income documents to the bank • Be a responsible homeowner until close of title and vacancy of home. |