Many homeowners are facing foreclosure, and are in fear of losing their family’s home. There are solutions available for homeowners who are facing foreclosure, however, it is important to be educated to be able to successfully save your home from foreclosure.

One of the first steps you should take is to identify what options you have available. Are you a good candidate for a loan modification? A short sale? A mortgage refinancing?

Loan Modification Qualifications

Loan modifications are for homeowners who have impossible to pay mortgage payments, meaning that your mortgage payment is more than 38% of your monthly income, and thus impossible to maintain your mortgage as well as all of the other responsibilities associated with providing for your family.

For individuals considering loan modification, if you meet any of the qualifications below, you would be a good candidate:

- Mortgage rates that are 8%+
- If you have an ARM (adjustable rate mortgage) or your mortgage has already reset
- If you owe more on your home than it’s worth
- If you’ve suffered a financial hardship (lost your job, medical emergency)

Loan modifications allow homeowners to halt foreclosure proceedings, and give you time to “catch up” on your mortgage. If you are interested in a free evaluation, please click here to contact us.

Short Sale Qualifications

A short sale is a situation that makes the most sense for homeowners who have already gone beyond the point of loan modification and are under foreclosure.

If your home is under foreclosure, you are going to have to file for bankruptcy to be able to be able to rectify the balance remaining on your mortgage. A short sale, however, will allow you to sell your home, and use the proceeds of the sale to pay down the balance on your home.

This will allow you to avoid bankruptcy, and preserve your credit score.