1) Short Sale

A short sale allows the homeowner to avoid foreclosure,

minimize financial damage and move on from a

burdensome, unaffordable mortgage. In many cases,

a short sale allows the borrower to qualify for a new

mortgage in just 24 months, as opposed to five years or

more after a foreclosure.

A trained real estate agent can negotiate a short sale

with your lender if you have three qualifications. First, you

must show some type of financial hardship. Second, you

must have a monthly shortfall, meaning your monthly

expenses are greater than your monthly income. Finally,

you need to prove that your debts are greater than the

value of your assets (certain investments, property, etc.).

2) Reinstatement

A reinstatement is the simplest solution for a foreclosure,

however it is often the most difficult for homeowners

to achieve. The homeowner simply pays the total

amount past due (including late fees) to the lender.

This solution does not require the lender’s approval and

will “reinstate” a mortgage up to the day before the

foreclosure sale.

3) Forbearance or Repayment Plan

A forbearance or repayment plan involves negotiating

with the mortgage company to allow the homeower

to repay back-payments over a period of time.

The homeowner typically makes current mortgage

payments in addition to a portion of the back-payments

owed. This option requires lender approval.

4) Mortgage Modification

A mortgage modification involves the reduction of

one of the following: the interest rate on the loan, the

principal balance of the loan, the term of the loan, or

any combination of these. These changes require lender

approval and typically result in a lower payment for the

homeowner and a more affordable mortgage.

5) Rent the Property

This option does not require lender approval, but does

require the homeowner’s ability to rent the house

for enough money to cover the monthly mortgage

payment.

It is important to remember that there may be

unexpected costs associated with the maintenance

of a rental property in addition to the monthly

mortgage payments. Homeowners should take this into

consideration when deciding whether this option will

work for them.

      6) Deed-in-Lieu of Foreclosure

  Also known as a “friendly foreclosure,” a deed-in-lieu

allows the homeowner to return the property to the

lender rather than go through the foreclosure process.

Lender approval is required for this option, and the

homeowner must also vacate the property. Deed-in-lieu

can potentially lessen the damage to a credit score

and future loan eligibility, and sometimes the lender

will forgo their right to pursue a deficiency judgment,

meaning the homeowner will not be responsible for

further payments.

7) Bankruptcy

Many have considered and marketed bankruptcy as a

“foreclosure solution,” but this is only true in some states

and situations. This does not require lender approval,

but you must have non-mortgage debts that you claim

as a hardship.

Entering bankruptcy can be a risky and costly process.

Be sure to seek the advice of a qualified bankruptcy

attorney when pursuing this as an option.       

8) Refinance

As opposed to mortgage modification, refinancing

means you will be acquiring a new loan based on your

current credit standing. If you have already missed

mortgage payments, your credit score may make it

difficult to find a loan with cheaper payments.

9) Servicemembers Civil Relief Act

(military personnel only)

If a member of the military is experiencing financial

distress due to deployment—and that person can show

that the debt was entered into prior to deployment—he

or she may qualify for relief under the Servicemembers

Civil Relief Act. The American Bar Association has a

network of attorneys that will work with servicemembers

to help qualify them for this relief.

10) Sell the Property

Homeowners with sufficient equity can list their property

with a qualified agent who understands the foreclosure

process in their area. Unfortunately, many homeowners

in today’s market have experienced a decline in home

value and may owe more than what the home is worth.  

IDAHO SHORT SALE(S)...

• Acquire the services of a knowledgeable Realtor who is a Idaho Short Sale Specialist and a knowledgeable attorney, if necessary.
• Sign an "Authorization Letter" which authorizes your Idaho Short Sales Specialist to begin negotiations on your behalf. This authorization will not change the terms of your loan, it simply allows your representative to negotiate on your behalf. A complete financial statement will also be required which is a snapshot of your financial condition.
• Prepare a "Hardship Letter" which outlines the reason you are unable to make the monthly payment obligations and what other factors will keep you from making future monthly obligations.
• Your lender will request a broker price opinion from your representative which includes condition of your home, comparable sold properties, and the overall condition of the current real estate market.
• A HUD settlement statement outlining the proposed selling price and all associated costs is provided by your representative.
• The lender will look at any offers made by ready, willing and able buyers and see if the offer makes economic sense compared to allowing foreclosure.
• If your lender decides the short sales process is the best avenue available they will approve your proposed short sale and schedule the final process with your representative.

• Hardship Letter
• Financial Statements
• Income Tax Returns
• Bank Statements
• Pay Stubs
• Other Documents (required by lender)

If you want to know if you are eligible for a short sale, please contact me.  I will assist you in a  professional, confidential, and non-judgemental way.  I am here to help you avoid foreclosure! 

If you have a property that needs to sold as an Idaho Short Sale, please contact me and I will get the paperwork right out to you!

Why would a lender want to accept an Idaho Short Sale?  Foreclosure is a time-consuming and expensive process for lenders.  Many times, lenders recognize that if they accept the short sale, their company will actually loose LESS money than if they foreclose on the home. It is better for their bottom line. 

Are all homes eligible for a Short Sale?  No, there must be a "hardship", or some reason that you cannot continue to make the payments on your home.  Also, there are many different lenders, and each one has different criteria for which Short Sales they will accept. 

Does the homeowner have to re-pay the "short" amount?  Sometimes the lender will require a homowner to sign a note for all or some of the deficit amount.  It is based on your ability to pay.  Signing a note however, is a much better situation than having a foreclosure on your credit history. 

Do I have to be behind in my payments? NO, not necessarily!  Each lender is different, and each short sale is based on your financial situation. If you won't be able to continue making your payments, call to find out.  Taking action sooner is always better, then not and letting your home go to foreclosure!