Forbearance:   An agreement between you and the lender that reinstates the delinquent loan because you will put up an initial lump sum of the total delinquency and pay the rest over a period of time.

Loan Modification: A change in any of the terms of the original note. This includes decreasing the interest rate, re-amortizing the remaining balance, extending the term of the note. 

If you have attempted to mitigate these options for yourself and have not been able to obtain resolution, please contact one of our specialist immediately.  As specialists in these matters and will be able to assist you.

OPTION 2:  WORK WITH A DIFFERENT  MORTGAGE COMPANY

Refinance:   Where a new lender loans you the monies to pay off the existing debt. This option is generally open to borrowers that face a temporary setback in their financial situation and can prove that they can afford the new mortgage payment. Most financial institutions will not approve the loan unless they have the above mentioned criteria and at least 20% equity in the residence.

Junior Mortgage: Where a new lender will offer a second loan or junior lien in order to make up any back payments, late fees and other charges necessary to reinstate the loan.   Rates are typically 12%-18% and terms are 5 to 10 years.

If you have attempted to negotiate these options for yourself and have not been able to obtain resolution, please contact one of our specialist immediately.  As specialists in these matters and will be able to assist you.

OPTION 3:  SELL YOUR HOUSE

List with a Realtor on the MLS (Multiple Listing Service):   Due to the short foreclosure period in Texas, listing your home with a real estate broker and being able to close with in 21 days is a very unrealistic task due to the new buyers financing.   The process of lenders approving the buyers credit, appraising the house, completing underwriting, reviewing title, getting a new survey, getting payoff demands and drawing documents - - can take 3-4 weeks to compete (assuming no problems pop up). The property being under contract and scheduled to close will NOT stop the auction. 

Sell to an Investor: Selling your house to an investor who offers “cash at closing”; no new loan contingencies; no repairs to be made (AS IS): fast escrow: a for sure sale providing a fresh start with reputation and integrity intact would be your best option. Although the investor’s price is less, the investor can salvage the your credit, bring loans current, rebuild your credit by paying your debt on time every month. This is a much BETTER solution than doing nothing and losing everything at the foreclosure auction.

The option to sell your home should only be considered after mitigation has failed.  Please contact one of our specialist immediately.  As specialists in these matters and will be able to assist you.

OPTION 4:  FILE BANKRUPTCY

Bankruptcy is a way for people who owe more money than they can pay right now, to either work out a plan to repay the secure creditors over time in Chapter 13 filings, or wipe out (discharge) most of their bill in a Chapter 7 filing. While the debtor is working out a plan, or the trustee is gathering the available assets to sell, the Bankruptcy Code provides that creditors must stop all collection efforts against the debtor. What happens to your bills, debts and house will be controlled by the Bankruptcy Code and the Federal Rules of Bankruptcy(you will NO longer have control over any of your assets). Bankruptcy will have a serious impact on your credit life for the next 10 years.  The Hope Team will not be able to assist you in this matter.  It recommended that you contact an attorney that specializes int bankruptcy law if you choose to take this route.

OPTION 5:  WALK AWAY AND LET IT GO

Deed-In-Lieu:   You voluntarily convey the title (property) back to the lender in lieu of the lender foreclosing. Most lenders would rather go through with the auction and clean title by extinguishing inferior liens. 

Let it Go to Auction: Obviously, nothing good can come from this, you lose your home. You end up with no money, credit problems, hard to find new housing due to past history and the lender can sue you for any deficiency.