Homeowner Afordability

The new stimulus package addresses homeowners that owe more on their mortgage than the home is worth. Also, changes in income that have affected a homeowners ability to stay current on their mortgage payments have been addressed. According to the article by the National Association of Realtors 3-4 million homeowners will be helped. The $75 Billion Homeowner Stability Initiative will reach up to 3 to 4 Million at-risk homeowners and would require lenders to lower interest rates and possibly reduce principal loan balances. The federal government will subsidize the lenders and offer incentives to lenders and homeowners for paying the modified loan payments on time. Here is a chart from the New York Times showing conditions that will be changed to allow more homeowners to get assistance.

Foreclosure Relief

It seems that everyday we are hearing more and more news about the economy and the uncertainty of the housing market. If you are behind on your mortgage payments, this is an excellent time to negotiate with your lender. The banks don't want your house. They will try to work out a repayment plan but you must be able to show that you can pay the monthly payment. Unfortunately, many times, the circumstances that caused homeowners to fall behind on the payment is a loss of job, medical conditions, divorce, or other problems that can't be resolved immediately.

If you are in this position and don't see a way out, call us. We have helped many homeowners to negotiate payment plans or modify their current mortgage. The solution depends on your current situation.

We have heard that as much as 50% of the homeowners that get foreclosed have never contacted their mortgage company to work out a solution. It is distressing to feel that you can't overcome the problem, so many people just try to ignore it.

A foreclosure will take about 5 years to come off your credit report, but a short sale only affects your credit for about 2 years. Either way, you'll have to move. If you can start to work toward the future, planning a new start in a couple of years, that is certainly a better option than foreclosure.

Don't give up without at least knowing the options. Call me at 706-296-4395. I have experience in negotiating with the lenders and have all the forms that need to be completed to process a short sale.

The banks can be very difficult to deal with, especially when you're in a desperate situation. I am willing to help negotiation your current loan at no charge. If we decide that a short sale is your best option, there is still no charge to you. The real estate commission is negotiated with the bank after we get an offer on your home. A short sale means that the bank agrees to accept less than is owed on the mortgage.

Short Sale vs. Foreclosure

If you are behind on your mortgage payments, you may be able to work out a new payment plan with your mortgage company. If you no longer have income to support the mortgage payment, you may be getting close to foreclosure... There are other options to consider. A short sale is when the lender agrees to accept less than the amount owed on the loan as payoff for the loan. This will still hurt your credit but not nearly as severely as a foreclosure.

Each short sale is reviewed individually. The amount a bank is willing to accept is based on many factors, including the appraised value of the home, real estate conditions in the area, the amount of the loan, and the homeowners current financial situation.

Once an offer is submitted, along with several other documents, it can take as long as 60 days for approval. With the signed purchase contract, the lender will require a hardship letter from the homeowner, bank statements or check stubs to document income, and a preliminary HUD-1 (settlement statement showing net amount to the lender). Each lender is different so other information may be required.

After receiving the completed package, the lender will order an appraisal. That will be reviewed within a couple of weeks along with the offer. At this point, a counter offer may be made by the lender. Other terms may be negotiated with the homeowner at this time. Once an agreement has been made, including additional lienholders, the lender and/or its investors/insurers will give a decision within a week.

This process can be slow but may be well worth it to avoid foreclosure. Call if you have any questions - Jerri 706-296-4395

Mortgage Fraud

Check out this video regarding mortgage fraud. Take the advise and don't ever do anything to give up control of your property. If you are not able to make the payments, contact your mortgage company to work out a plan. Anyone telling you that they can eliminate your deliquency is not telling you the truth. Others may help you but the final control is with your lender.





We work with homeowners to negotiate new payment schedules and or loan terms... however, we have no authority to make that commitment to you, it is a decision that must be made by your mortgage company.

Tips to Avoid Foreclosure

If you are unable to make your mortgage payment, you may have 2 or 3 months before the bank starts the foreclosure process. They will contact you by phone and mail to try to collect the past due balance. If they are not able to contact you, this tends to speed up their process.

If you will talk with the bank, many times you can work out a new payment plan. These days, banks are more willing to add the past due amounts on to the loan balance, reduce the interest rate, extend the length of the loan or consider other ways to help you keep your home. The good news is that banks do not want to take back houses. This creates more work and expenses for the bank to maintain the house.

1 - communicate with the bank as soon as you realize you won't be able to stay current on your mortgage payments.

2 - do what you say you'll do. If you ask them to consider a loan modification, make sure you will be able to make the payments if they accept your offer.

3 - if you see that you can't afford the house, see if the bank is willing to consider a short sale. This will keep you from going in to foreclosure and usually banks are willing to accept less sice it is very expensive for banks to foreclose.

4 - don't pay anyone for help to avoid foreclosure. You can negotiate with the bank on your own or contact a Realtor who is familiar with short sales and loan modification negotiations.

5 - the negotiators at banks have many files they are working on. Make sure you have all the required forms to them at one time. Otherwise, you may get put on the bottom of the stack since other files are complete and waiting for their approval.