Do you know the Short Sale Alternative?
The Government is providing our Lenders with a lifeline to help homeowners stay in their
homes even in the toledo area, by offering an incentive program. They can now reface their image of not working with
troubled mortgages and simply forcing homeowners to walk away.
That was then and this is now, things have changed. You may not know your lenders are now working with more homeowners to find betters solutions and are offering refinancing & modifications to more homeowners that have found them self in a difficult situation.
Resource: Short Sale Facts - Worth the Time
Check out Making Homes Affordable on the Official Goverment page that is updated regularly.
Do you qualify for Refinancing, answer 4 questions.
Do you qualify for modification, answer 5 questions.
Try my Toledo Short Sale options.
Other Resource Links to Answer your questions if you don't think you qualify. Click Here
Finance Information- meaning of different loan terms, find help with your Toledo, Sylvania, Maumee, Perrysburg Home Loan.
Consider Short Sale Help
There are many new programs in place and your lender may or may not be participating in, but knowing they will start you off on how to short sale is a start. First contact your lender to see if you have a FHA backed mortgage (freddie mac or fannie mae) because these loans are easily refinanced into more affordable payment plans. Even if your home is under water, as long as your income can provide for the new payment plan. They go as far as writing off your mortgage loss. lower interest, which lowers your payment greatly. Short sale may not be the best choice for you.
If you don't have one of these government backed loans, don't give up. Call your lender because many banks are participating in the new program to help owners get a payment plan adjustment for 5 years. Lowering your interest and making adjustments to help homeowners with their mortgage payments. See Hud for a great resource of information to Short Sale Help.
See a detailed explaination of the Government Programs in place to help homeowners refinance. You will still have to work with your lender, they provide these New Housing Programs, if they are participating. If they are not, go to HUD and they have the resources to provide you with the Banks that will work with you.
You will need to be informed before contacting your lender even if short sale alternatives won't help. They are extremely busy and knowing your situation, fiqures and the options that will work for you, will make the lender know you have taken this matter seriously.
For lenders to verify this information, though, they're going to need to look at your financial records. It is also important to remember that you should include records for each person who will be an owner of the house. So before you even visit the bank, make sure you'll be able to provide copies of these important documents:
- Paycheck Stubs
Remember that lenders are most interested in your average income. Not only will they want to see this month's paycheck, but also how much you've been making for the past two years. Steady employment is also more attractive to lenders, so if you've been hopping from job to job, be prepared to discuss the reasons why.
- Bank Statements
Most lenders will also ask you for copies of your bank statements.
- Tax Records
It's always a good idea to save copies of your tax returns, especially if you're self-employed. If you own your own business, it's important to note that lenders generally consider your income as the amount you paid taxes on--not the gross income of the business.
- Dividends &Â Investments
Lenders will usually consider long-term investment dividends, as well as your investment portfolio, when evaluating your income.
- Alimony/Child Support
If you receive steady payments as part of a divorce settlement or for child support, you can also include this as part of your gross income. Just remember that lenders will want to see a copy of your divorce/court settlement verifying the amount of the payments.
- Credit Report
Virtually every lender will want to see a copy of your credit report as part of the loan application process. The report lists all of your long-term debts, as well as your payment history. In general, they will require you to pay for the credit report (approximately $50), but if you have a recent copy, they may accept that instead.
General Utilities
Car Payments
Student Loans
Medical Bills
You will need to have a Hardship Letter Prepared Also. Mortgage Mitigator will be handling this and want to know in 3 paragraphs, Name on Loan, Loan #, Contact Information, why you need adjustments made on your loan, what caused this and what are you doing now that will make it possible to pay payments on time with this modification, what plan would work for you. Know that if your income won't justifiable be enough to make the payments even after the refinance, you will be denied. DTI ratio is how they decide. Get a Free Market Valueof your Home by Victoria of Danberry.
Lenders in this Program are given incentives from the government and they will require you get money management counseling class. They should be prepared to provide you with the information. There are also incentives to your balance from the government of 1,000 a year, ever year you make timely payments for a limited time.
If these Short Sale Alternatives aren't for you.
I would be happy to help you with a short sale, if the above options don't work out for your situation. Go to: www.toledoshortsale.com for more help.
Get a Hardship Letter Prepared for the Lender:
If you considering a modification on your loan or short sale, you should get a hardship letter prepared.
Hardship Letters need to be to the point, truthful while convincing lender to stop foreclosure or accept the plan your presenting. Don't threaten, complain or blame just present a possible solution. Show legitimate reason for falling behind. Banks usually hands these over to a loss mitigator who receives so many.
Step 1: Todays Date
Step 2: Title Hardship Letter for __________ example: Short Sale, Loan Modification, Repayment Plan
Step 3: Property Address
Property Account # & Lenders Name
Borrowers Name on Account
Date Purchased
Loan Balance
Professional Appraisal Value
(For short sale only & isn't required but shows your determined & taking that extra step that most don't bother. A Real Estate Expert can give you the ball park figure)
Step 4: State the Work Out Plan you are seeking. Example Short sale, modification on loan, repayment.
Step 5: Explain financial hardship example: Job Loss, Illness, Family death, divorce, health insurance, Adjustable mortgage, business failure, unexpected expenses.
Step 6: Explain why this caused you to fall behind & why you can't comply to the original terms. If you feel you will be able to later, you may want to have a modification on terms till your situation improves.
Step 7: Explain a plan of payments to get back on track. This plan must be possible based on your income. If short sale is your goal than you should know what to expect from you home sale. I can help you with a Short Sale.
Step 8: Thank them
List contact information
Signatures of anyone listed on this loan
Remember you must present a possible plan that you can live with. Do a rough draft until it's as short & to the point as possible. If your having trouble, please get professional counseling to help.
Can you still sell your Home if you have a tax lien on the Property? What to do now! This is a serous matter and you may need advice from an attorney plus an Experienced Top Agentfrom the Danberry Company.
Can you list Your Home for Sale by Owner? We currently provide you with a free service to List your Home for sale by owner that will help give your listing more exposure. Post your home for sale by owner for free.