Options for Defaulting Homeowners

Law BooksOur firm works diligently with borrowers to assist in giving them the informational tools which may save their homes. In tough economic times, we recognize the need to educate and inform mortgagors of the options available to lenders and place them in touch with the correct departments for assistance.

Reinstatement: Reimbursement of installments that are past due, including additional fees and costs incurred by the lender because of the loan default.

Payoff: Repayment of amount due on promissory note (principal plus interest and all fees and costs) which gives full discharge of the debt and satisfies the mortgage.

Forbearance Agreement / Repayment Plan: Agreement between the lender and borrower wherein the lender agrees to stop the foreclosure and the borrower agrees to a payment plan that will bring the loan current over a specific period of time.

Loan Modification: A permanent change to the existing delinquent mortgage and/or promissory note.  Lender may reduce the interest rate, term of loan, payment options, or other loan provisions to resolve the default.

Deed in Lieu of Foreclosure: Release of the borrower from the note and mortgage obligations in exchange for a deed to the property.

Short Sale: Lender's acceptance of a purchase offer on the mortgaged property that is less than the full amount due on the loan.

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