Loan Modification

Forbearance Agreement

A forbearance agreement is used when a bank or lender is legally able to foreclose on a property, but negotiates a payment plan instead with the homeowner. This purpose of a forbearance agreement is to enable a borrower to make monthly payments instead of paying the delinquent amount in one lump sum.

Restoration Plan

A restoration plan can be applied for homeowners who are behind on their mortgage payments, but can now pay the original payment if they could catch up. With a restoration plan the bank raises the monthly payment for a set period of time until the arrears amount is caught up.

Unfortunately, restoration plans as well as forbearance agreements, are usually only a short term fix. Many homeowners can barely afford the regular payments, much less a new higher monthly payment. We recommend contacting us for a loan modification, before you attempt a restoration plan. A loan modification can be a permanent solution.

Insurance Claim Payment

This program is utilized when a private mortgage insurance company is involved such as FHA. With this program a lump payment is paid to the bank to cover a portion of or all of the delinquent payments. This lump payment can be loaned to the homeowner interest free. The homeowner agrees to repay the note when they can feasibly afford to. This claim amount would be placed as a lien on the property and would have to be paid before the property could be sold.

Short Sale

A short sale is when a bank agrees to discount the mortgage principal in order for the homeowner to sell the home to prevent foreclosure. Generally a bank will allow this to happen when there is negative equity in the home.

Deed in Lieu of Foreclosure

The homeowner signs the home back over to the bank so they can avoid some of the repercussions of a foreclosure. A deed in lieu is common when a borrower is unsuccessful in selling the home on their own.