What Are Your Options To Avoid Foreclosure?

What Are Your OptionsToAvoid Foreclosure HOMEOWNER OPTIONS TO AVOID FORECLOSURE 1. Short Sale A short sale is an agreement between the lender and the borrower to put your house up for sale for an amount that is less than the remaining balance of your mortgage. You have to give up your property and buy or rent another place to live in after the sale’s closing. It may totally eliminate your loan or reduce it a considerable amount and you may get assistance for relocation. Although it will still have a negative impact on your credit score, a short sale lets you recover your credit score faster than a foreclosure. 2. Refinance If the homeowner’s credit allows for a refinance and if the homeowner meets the eligibility criteria, an option is HOPE for Homeowners (H4H) a program available through the U.S. Department of Housing and Urban Development (HUD) www.hopenow.com. Real estate professionals should also urge homeowners to visit the Making Home Affordable Web site for information: www.MakingHomeAffordable.com. 3. Lender Workout Lenders often will work with distressed homeowners to help them keep their homes by reducing or rolling back interest rates, forgiving back payments