If you are facing a possible foreclosure, you do have some options for actions that you can take. Below is a list of those options along with the pros and cons of each.
Option |
Pros |
Cons |
Refinance |
1. Gets you a 30 year mortgage at today's low rates. |
1. Not able to qualify for refinance if you have missed payments on your credit. |
Loan Modification |
1. Adjusts your interest rate to a low rate and spreads balance due out for another 30 years. |
1. Over 4.5 Million Homeowners have applied for a HAMP Loan Modification since January, 2009. As of April, 2011, only 670,000 or less than 15% have received successful permanent modifications. |
Bring Your Loan Current. |
1. Gets you back on track with your lender. |
1. May not be financially realistic & feasible. |
Do Nothing & Allow Bank to Foreclose |
1. Gets you out from under your underwater loan. |
1. You won't be able to stay in your house. |
Deed-in-Lieu of Foreclosure |
1. Allows you to voluntarily deed your house back to your bank. |
1. You won't be able to stay in your house. |
Short Sale |
1. Protects your credit from a Foreclosure.
|
1. You won't be able to stay in your house. |
Bankruptcy |
1. Will Buy you some time before the bank forecloses. |
1. Does NOT stop the foreclosure process. Only puts a temporary stay on the process. |
Please email or call us at 714-989-6176 for a no-cost, no-obligation, confidential foreclosure prevention consultation.
Please do not consider this legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Please consult an attorney & CPA.