If you are behind on your payments, you’re not alone. However, losing your home may not be your only option. As we say in all of our articles, don’t wait. The faster a homeowner acts, the better the chance they have reaching a resolution with the Bank.
This article explores 6 Mortgage Foreclosure Workout Options that may be available. The Lawyers of 954 Foreclosure Attorneys know what it takes to get the job done.
6 Mortgage Foreclosure Workout Options
- Reinstatement: The Repayment to the Bank of the amount in default or payments behind returning the loan to it’s current status. As a result, it reverts to its Pre-Default status. (Reinstatement after Judgment anticipates the vacating of Judgment and Dismissal).
- Forbearance: The temporary reduction or suspension of payments wherein the Bank agrees not to pursue foreclosure or other remedies for default. Depending on the terms, the payments due are made by submitting larger payments on the principal throughout the remainder of the loan. In addition, they will pay a higher interest rate, and/or extending the term of the loan.
- Repayment Plan: An Agreement with the Bank wherein they repay the monthly payments plus an additional amount over time to reduce arrears.
- Loan Modification: An Agreement with the Bank whereby one or more of the terms are permanently changed. This is recorded in public records.
- Short Sale: The sale of the property for less than the total amount owed on the note and mortgage. If the Bank agrees to it, the remaining portion of the debt may be forgiven by the Bank.
- Deed in Lieu of Foreclosure: This occurs when they transfer title to the Bank. As a result, the Bank agrees not to file a Foreclosure or dismiss a pending action. This is also called Cash for Keys. In other words, they may receive funds from the Bank to help them relocate.
If you are a Broward or Palm Beach County homeowner in pre-foreclosure or foreclosure and have questions about your home and your options, contact 954 Foreclosure Attorneys, PLLC @ 954.237.7740.
