1. Mortgage Modification - this is were your exsisting loan is adjusted in order to accommodate your financial abilities
PROS - you keep your home & it reduces your monthly payment for a period of timeyour financial abilities
CONS - you lose some right on your loan & it usually is only temporary
2. Short Sale - this is were your home is sold at a reduced price because the value of the home is less than what you owe. This would be your 2nd viable option if your lender would not allow you to do a mortgage modification.
PROS - doesn't damage your credit as bad as a foreclosure & you can eliminate your debt much quicker
CONS - you may be held resposbily to pay the difference of the bank's loss on the sale, you no longer have your home and you probably cannot purchase a property for 2-5 years
3. Deed-in-Lieu of Foreclosure - your home's deed is given to the bank/lender
PROS - if the deed doesn't cover the full amount of debt owed you can sometimes acquire a "deficiency waiver" for the remaning balance
CONS - not very many lenders will go this route because then it is their responsibility to sell the property
4. Forebearance of Payments - you are given a brief respite from your mortgage payments
PROS - you keep your home and there is usually only a minimal drop in your credit score
CONS - only temporary and you may have to give up some rights on the loanWhen in doubt what route is best for you and your family be sure to speak with your trusted attorney, lender and/or Realtor!
Sean S. Williams
Licensed Broker, Realtor®, ABR®, e-Pro®
1st Time Buyer & Relocation Specialist
of Louisville, Kentucky
"Eat. Sleep. Real Estate."
*Serving the Louisville, Kentucky & Surrounding Areas.
Trust in a dedicated Real Estate professional to cater to your needs.
Accredited Buyer Representative® , e-Pro®, First-Time Home Buyer Specialist & Louisville Relocation Specialist.
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