If you need more help, you’ll find links to state laws and even forms. There are many decisions that we make in our day-to-day family life that have potential legal issues and ramifications that we should understand. http://family.findlaw.com
1. Renegotiate: A) Forbearance Agreement – You must have a job and 3% equity in your home.
B) Loan Modification – Unpaid payments and late fees are tacked on to the end of the loan. You must have a job and 3% equity in your home.
2. Refinance: IF 90 days in arrears, it is very difficult. Reads next to impossible!
3. FISBO/Investor: Investor needs at least 30% discount off current market value of property.
4. Declares Bankruptcy: 95% of homeowners who declare BK still lose their home through foreclosure! Then you have BOTH foreclosure and bankruptcy on your credit record. Additionally, 2-4 years after discharge before you will be able to buy a new home.
5. Friends/Family/Lotto: It could happen! Most friends and family members aren’t interested in helping out at this point.
6. Deed in Lieu of Foreclosure: Still shows up as foreclosure on credit reports. (Just no judgment. Quick results for the lender.)
7. Do Nothing: Not a good option! Foreclosure means you will have 5-7 years before you can buy a home through conventional lenders.
8. Lease Option with Buy Back: Investor buys at 30% discount. (Short Sale) You lease property back from Investor.
9. List property for sale with RE Broker: Can prevent Deficiency Judgment.
Deficiency Judgment: Lender can come after you. Short Sale can come after you too. (Anything but Term Life Insurance.) Lender can go after your IRA’s, 401K’s etc.