Frequently Asked Questions
I am late on my mortgage payments, what are my
options?
We understand that falling behind on your mortgage and facing the possibilty
of foreclosure can be traumatic and extremely stressfull. Home Mitigation
Solutions can provide you with options to help you avoid foreclosure.
What is a short sale?
A short sale is an agreement with a lender to accept less than the amount
owed by a borrower via a sale of the property to a third party. With this
agreement, the lender releases the borrower from the mortgage, thereby
preventing foreclosure.
What are the advantages of a short sale?
Foreclosure can remain on your credit for up to seven years while a short
sale usually gets reported as a “settled debt” and is significantly less
damaging With a short sale, your FICO score will not be as negatively
impacted as it would be with a foreclosure, and you will be able to get into
a new home much sooner as well.
What do I need to get started?
In addition to the homeowner proving hardship, lenders require a specific
set of supporting financial documents to consider a short sale. Contact Home
Mitigation Solutions today and one of our specialists will help you get
started.
What effect will a short sale vs. a foreclosure have on my credit?
Foreclosure can remain on your credit for up to seven years while a short
sale usually gets reported as a "settled debt” and is significantly less
damaging.
Home Mitigation Solutions not a credit counseling agency, but credit experts
say that a foreclosure will typically reduce a borrower’s credit score by
250 to 280 points and the borrower would usually need to wait more than 36
months before a lender will offer any kind of interest rate that makes
sense. A short sale, on the other hand, will typically only result in an 80
to 100 point hit to the borrower’s credit and a significantly shorter
waiting period before buying another home, usually about 18 months or less.
A loan modification is an agreement between a lender and a borrower to
change the original terms of a loan in order to make payments more
affordable.