Do you own a house on Long Island and for some reason you can't keep paying for it and are you losing it?
Did you know that you have several options to stay at home?
If you are facing financial difficulties—whether they are short or long term—start exploring your options today.
Even if you haven’t yet missed a mortgage payment, but are worried you might fall behind soon, now’s the time to take action. You may be eligible to refinance or modify your mortgage loan, lowering your payment and making it more affordable. Or, if you’ve missed payments and find yourself buried under late fees and past-due amounts, you may qualify for a temporary (or permanent) solution to help you get your finances back on track and avoid foreclosure.
An agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc.
May reduce your monthly mortgage payments to a more affordable amount
Less damaging to your credit score than a foreclosure
Stay in your home and avoid foreclosure
In the Real estate A short sale is a financial option that is sometimes available to homeowners who are distressed borrowers. They are behind on their mortgage payments and have a home that is underwater. That is, the home is worth less than the outstanding balance on the mortgage.
Short sales are usually initiated by the homeowner when the value of a home drops by 20% or more. Before the process can begin, the lender who holds the mortgage must sign off on the decision. Additionally, the lender, typically a bank, needs documentation that explains why a short sale makes sense. After all, the lending institution could lose money in the process.
If approved for short sale, the buyer negotiates with the homeowner first and then seeks approval on the purchase from the bank second. It is important to note that no short sale may occur without lender approval.
Short sales tend to be lengthy and paperwork-intensive transactions, taking up to a full year to process. However, they are not as detrimental to a homeowner’s credit rating as a foreclosure is. A short sale looks better to future lenders and creditors. It shows that the person took action before the bank moved to repossess the home. A homeowner who has gone through a short sale may even be eligible to purchase another home immediately.
DEED IN LIEU
Another option to avoid foreclosure is by completing a deed in lieu of foreclosure. A deed in lieu of foreclosure is a transaction in which the homeowner voluntarily transfers title to the property to the lender in exchange for a release from the mortgage obligation.
A deed in lieu stays on the credit report for up to seven years, the same as a foreclosure. Homeowners can use a deed in lieu of foreclosure as a method to avoid the generally harsher effects of actual foreclosure. Normally, it’s also an easier way for a homeowner to give up all interest in his home. The bank doesn’t really want your house, so you might have to negotiate a bit to do this.