FAQs

When coping with a new and challenging situation, especially when a home is at stake, questions will arise. The reality is that millions of homeowners across the country are finding they have more questions than answers. I hope the following information will help you better understand your circumstances and your options.

 
Do I qualify for a Short Sale?

The qualifications for a short sale include any or all of the following:

Financial Hardship – There is a situation causing you to have trouble making your mortgage payment

Monthly Income Shortfall – ‘You have more month than money.’ A lender will want to see that you cannot afford, or soon will not be able to afford, your mortgage

Insolvency – the lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage

What is Mortgage Modification?

A mortgage modification is a process where your lender changes any or all of the following:

• Your interest rate
• Your principal balance (through a reduction)
• Your loan terms (i.e., from an adjustable to a fixed rate)

The process can allow borrows to stay in their property when they can no longer afford their current mortgage payments.

Why would a lender modify my mortgage?

Lenders realize in some cases it is better to work with current borrowers to lower payments or improve terms in order to keep homeowners in their property. The average foreclosure can cost a lender from 35-50% of the value of a property, so keeping borrowers in their homes can be a good option for everyone.

What do I need to qualify for a mortgage modification?

According to the Making Home Affordable website (www.MakingHomeAffordable.gov), you will need the following information for your lender to consider modification.

• Information about your first mortgage, which can be found on your monthly mortgage statement
• Information about any second mortgage or home equity line of credit on the house
• Account balances and minimum monthly payments due on all of your credit cards
• Account balances and monthly payments on all your other debts, like student loans and car loans
• Your most recent income tax return
• Information about your saving and other assets
• Information about the monthly gross (before tax) income in your household, including recent pay stubs if you receive them or documentation of income you receive from other sources

It may also be helpful to have a letter describing any circumstances that caused your income to be reduced or expenses to increase (job loss, divorce, illness, etc.)

How do I qualify for a mortgage modification?

The first call you make should be to your lender. Have the above information available and then call the customer service number to discuss what options may be available. If the customer service representative is unclear of your request, ask to be transferred to more of the following departments:

• Loss Mitigation
• Mortgage Modification
• H.O.P.E

Prior to contacting your mortgage lender you can quickly complete an eligibility test at http://www.MakingHomeAffordable.gov The test will let you know if you are eligible for modification through the government-sponsored Home Affordability and Stability Program (HASP). For a list of mortgage lenders and servicers, visit www.HAMPNow.org.

What if I don’t qualify for a mortgage modification, can’t afford my home and owe more than it’s worth?

You are not alone and foreclosure is not the only option. If your mortgage lender will not work with you to reduce you payment, you may want to consider a short sale. As a Certified Distressed Property Expert® (CDPE), I have undergone extensive training to process and negotiate a short sale and would be happy to discuss this as an option for you.

What is Home Affordable Refinance?

If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable Refinance. This will allow you to refinance your home and often lower your payments.

What are the qualifications for a Home Affordable Refinance?

According to information released by the government, the following are a list of qualifications:

• You are the owner occupant of a one- to four-unit home
• The loan on your property is owned or securitized by Fannie Mae or Freddie Mac
• At the time you apply, you are current on your mortgage payments (you have not been more than 30 days late on your mortgage payment in the last 12 months, or you have had the loan for less than 12 months, and have never missed a payment
• You believe the amount you owe on your first mortgage is about the same or slightly less than the current value of your house
• You have income insufficient to support the new mortgage payments, and a refinance improves the long-term affordability or stability of your loan

If you have lingering questions, please call me to discuss at (704) 502-7744. Or you may fill out the form below.
I'll get back with you personally.

Holly Pasut
Broker NC, Lic. SC, Certified Distress Property Expert (CDPE), Certified Luxury Home Marketing Specialist (CLHMS), Certified Negotiation Expert (CNE), Graduate Realtor Institute (GRI)

Holly@TeamHolly-would.com
Hines & Associates Realty
                                                                            Content courtesy CDPE.com