Individuals

Let’s be honest…times are tough and for many the decision to put food on the table or miss a few mortgage payments is one that is very real in today’s market. Unfortunately, missing a few mortgage payments may result in very real consequences.

I have missed a few mortgage payments, what should I do?

You have several options available to you such as repayment plans, mortgage modification including temporary interest free loans to get you up to date, short sale and Deed-in-lieu of foreclosure. Many of these rights disappear the minute your home is sold, whether by you or through foreclosure.

This is a complicated process and you need an experienced Real Estate professional to assist you. The MacPhee Realty Group is an experienced group of professionals who specialize in this kind of sale. Feel free to contact us at any time for questions you may have about the process.

Below are some basic instructions to help you communicate with your mortgage company. The sooner you call your mortgage company, the more options that will be available to you.

Before calling your mortgage company, familiarize yourself with these various options.

  • Repayment Plan
  • Forbearance
  • Loan Modification
  • Pre-Foreclosure
  • Deed-in-Lieu of Foreclosure
  • Foreclosure

Repayment Plan – Past due amounts are divided and added onto the regular monthly payments for an extended amount of time to bring the loan current. Plans may be from 6 to 24 months in duration.

Forbearance – A period of suspended or reduced payments that prevents delinquent reporting of the loan to the credit bureaus, and prevents late charges and fees accumulation, and referral to a Foreclosure attorney, as long as the contract is being honored by the homeowner.

Loan Modification – Loan is brought to a current status by adjusting one or more of three terms of the mortgage i.e. reducing the interest rate, extending the term of the loan. Example: Increasing principal balance by adding the past due amount (interest, taxes and insurance) to the existing principal balance or extending the term of the mortgage to 30 – 40 amortization.

Pre-Foreclosure Sale – An approved sale of the property to an unrelated third-party for less than is owed on the mortgage preventing a Foreclosure on the borrower’s credit report

Deed-in-Lieu of Foreclosure – This procedure allows the homeowner to transfer your property voluntarily to their lender or Mortgage Company and the debt or deficiency is often forgiven.

Foreclosure – Pre-foreclosure Process – approximately three to four month process.

  • Notice of Default to Homeowner giving 30 days to cure the default
  • Publish Foreclosure Sale for four consecutive weeks in local newspaper
  • Sale is conducted between 10:00am and 4:00pm first Tuesday day of each month.

Negotiating With the Mortgage Company

  • Contact your mortgage company regarding hardship with supporting documentation
  • Prepare a budget
  • Have bank statements & pay stubs ready
  • Suggest a remedy
  • Communicate with the mortgage company regularly

The last thing we want you to do is lose your home and damage your credit history if you can prevent it. This process is a very serious and complicated process and requires the guidance of an experienced Real Estate professional to assist you. The MacPhee Realty Group is an experienced group of professionals who specialize in this kind of sale. Feel free to contact us at any time for questions you may have about the process.

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