Loan Modification Options
By Sandy Flores
Special to Excelsior
Many homeowners who are facing very difficult financial situations, have options to avoid foreclosure. Here are some of the most common:
Repayment plan, known in English as “Forbearence.” Under this option, with approval from your lender, it may allow you to reduce or suspend payments for a short period of time. Following this abstention, you start again with your regular payments, including the additional amount that accumulated as a result of this agreement. This option will let you stay on their property at reduced or temporarily, allowing you to stabilize financially suspended payments.
Loan modifications. This is another option if you do not have enough income to make your payments current. The lender in its sole discretion has the option to change the terms of your original loan to suit a payment that is more accessible to their financial situation. These changes usually begin with a trial period, and may qualify to progressively otherwise modified for a longer time. This form will also allow you to keep your property more affordable payments.
Refinancing. This is an exclusive option for those homeowners who are current on their mortgage payments, but nevertheless need to benefit from the low interest rates being offered today to lower your monthly payments. The homeowner can refinance today your property, even if the balance due is greater than the current value of your property.
Under the program Affordable for Homeowners HARP Refinancing, the owner will be able to refinance and thus qualify for a new mortgage loan that allows affordable monthly payments … To qualify under this application in this program the mortgage loan has I be insured by Fannie Mae and Freddie Mac
Short Sale / HAFA Short Sale. This is an option which allows you to not qualify options Repayment Plan or Modification of your loan. By applying for and negotiating a short sale, your lender will allow you to sell your property at current market value, even if it sells below the amount you owe on your balance. Under the terms of a short sale, your lender may not go after you for the difference owed. The HAFA grant him a monetary incentive of $ 3,000 and many of the institutions are also offering additional financial incentives to homeowners who qualify to cover the costs of moving.
The scriptures in lieu of foreclosure or in English “Deed in Lieu of Foreclosure” is another option when Repayment Plan Loan Modification and are options which you may not qualify. In this option, your lender may accept voluntary transfer of title to the property and avoid the impact of foreclosure, as well as the expenses related to the embargo.
Normally, debt forgiveness results in taxable income, but under this Act Relief Mortgage Debt Cancellation of 2007, taxpayers may exclude certain debt become represented in their primary residence up to two million dollars (one million dollars for one person married filing a separate tax return).
The Act allows exclusion of income realized as a result of the modification of the terms and conditions of the mortgage, short sale, or foreclosure on your principal residence.
For more information, consult a professional with experience in Real Estate Loan Modification and / or short sale, as well as seek advice from a tax professional. To find help for free near you, you can call the Internal Revenue Service (IRS) at 1-800-829-1040. You can also visit the website: www.ayudaparapropietariosdecasas.com .