If you are facing foreclosure and need to re-structure your loan,  do a short sale , or do a deed in lieu of foreclosure here is the information you will need.

Definitions:

Loan re-structure-allowing you to restructure your loan taking $1,000 a year off of your payments.

Short Sale-It's when you can't sell your home for the amount that is owed on it. An example of a short sale is if you owe $190,000.000 on your home, but because there are lots of foreclosures in your neighborhood, the market value of your home is only $ 130,000.00. The bank will negotiate a settlement with you based on the offers you receive to purchase your home. You are generally forgiven the debt, but get about a 2 year, or 150 point credit hit. It's much better than a foreclosure on your record. A home foreclosure wreaks havoc on your credit for 7 years. Occasionally you will be taxed on the forgiven amount via a 1099 form. I have not personally seen a 1099 issue for the debt in a few years.

Deed in Lieu of foreclosure- You have your home listed for a predetermined amount of time, and it hasn't sold. You get the bank to agree to take the house back. You give them the deed to put in their name and re-sell.  

If you are going into foreclosure, or if you are scheduled for the sheriff's auction on Friday, we can help. Call us today. Tristam will come to your house and help you call your mortgage company.

Under the new Obama policies for homeownership, you can call your mortgage company at any time and ask for a reprieve to do a short sale. Most homeowners qualify. If you qualify, it gives you 4 more months in your home to save your credit and find somewhere to live. Many homeowners even qualify for paid moving expenses!

Go to:

http://www.makinghomeaffordable.gov/index.html

for the actual government page detailing the plan.