Foreclosure Alternatives

Explore every option available and foreclosure alternatives to save your home. As your foreclosure prevention specialist and Certified Distressed Property Expert here in Pensacola Florida I want to do everything I can to help you avoid foreclosure. Here are your options.

1. Reinstating the Loan

A viable option if the hardship was temporary and has been resolved.
Can be done up to the lender sale date.
All past due payments and late fees must be paid in full prior to the lender sale date.

2. Forbearance or Repayment Plan

A viable option if the hardship was temporary and has been resolved.
Enter into an agreement with the lender.
You may be allowed to make back payments over a set time frame.
Normally does not fully reinstate the mortgage until the plan is completed.

3. Refinance

Must have sufficient equity.
Must have a qualifying credit score.
Essentially qualify a loan as you did when the home was purchased.
May only be a short-term solution if a person does not have financial stability.

4. Loan Modification

May reduce payments by lowering interest rate and or extending the repayment period.
Requires that you qualify for the loan, based on income and credit.
Can result in higher monthly payments.
There may be a trial run period of you making the new agreed monthly payment.
A successful trial period does not guarantee the loan modification will be approved.
Typically, it does not reduce the principal balance.
High default rate.

5. Sell the Home

You may have enough equity in today’s market to outright sell the home.
Remember there will be closing costs to consider when selling.
Today’s 2021 real estate market means higher prices across all house sizes.
Be prepared to take your equity out, qualify for a low interest rate, get a newer home to reduce your insurance cost, and downsize in square footage.

Your Buy My House Guru & Friend,

Jack Lara, Broker-Associate
(850) 616-6377