Foreclosure:

You Have Options...

You have a way out...

You Don't have to go there!

Options. Alternatives. Choices. Thankfully, YOU have them!

In these harsh times, having options is what can keep you afloat. And for those staring down possible foreclosure, there are many life-savers to cling to - better and smarter choices.

Bottom line...there are tools to help you avoid foreclosure (a.k.a. the literal ruination of your personal finances).

And let's be perfectly clear...beyond costing you your home, foreclosure will ravage your credit score, making it impossible to land a reasonable mortage rate in the near future (among many other things). It even makes it harder to convince landlords to rent to you. Not good.

BUT...let's take a deep breath of relief. Why? Because you can sidestep foreclosure even if you are already late on your mortgage payements. How?

There are 10 Viable Alternatives to Foreclosure That You Need to Know...

Depending on your circumstances, some are a better fit for you than others. But ALL are better then tumbling into foreclosure - something your lender wants to avoid as well. Here are some options to consider:

• Repayment Plan. If you are 1-3 months behind on your mortage, talk to your lender and negotiate a fixed length of time to repay the amount you owe plus any late fees and interest. The lender simply will add this portion to your regular monthly bill to make up the difference. For example, your lender may agree to add half of the amount of your first missed payment into your next two regular payments.
• Forbearance. If you have a temporary loss or cut in income, ask your lender if they would be willing to reduce or suspend your payments for a certain length of time. At the end of that agreed upon time period, you restart your usual monthly payments. In return, the lender may ask you to pay one lump sum or to make extra montly payments to restor the status of your loan.
• Reinstatement. Often used in combination with forbearance, the lender agrees to accept the total amount of back principal and interest by a specific future date.
• Claim Advance. This is also known as "partial claim". Your lender works with you to obtain a on-time payment from the FHA-Insurance fund to bring your mortgage current. The federal government will give your lender an interest-free loan in the amount you owe. In return, a lien isplaced on your home and remains there until you pay the mortgage in full or sell your house. You can qualify if your loan is between 4-12 months delinquent.
• Loan Modification. If you can make part of your monthly payment but are in danger of falling behind, talk to your lender about changing the terms of your mortgage. This is like refinancing your home. The lender may add your missed payments back into the outstanding balance, cut your interest rate, extend the loan length, or do all three.
• Short Sale. Work out a deal with your lender to sell your home for whatever the market will give you. If your property sells for less than what you still owe on the loan, the lender takes the proceeds from the sale and discharges your remaining debt. New laws allow you to use a licensed agent to help you short sell your home and it costs you nothing. Call me at 417-459-5116 and I can show you how!
• Deed in lieu of foreclosure. This should be considered something of a last resort. If you are unable to sell your house, you can seek to transfer title back to your lender and, in return, the lender cancels the rest of your debt. You lose all your equity and still face taxe consequences, but your credit won't be as badly impacted as it would in a foreclosure. This option may not be accepted by the lender if you have a second mortgage or if there are liens on the house.
• Reverse Mortgage. If you have little remaining balance on your mortgage you can use this option to convert your equity into cash while retaining ownership.
• Assumption. Under this arrangement, another qualified buyer assumes full responsibility of your mortgage. It's important to note, though, that not all mortgages are assumable.
• Payment Assistance. Housing counseling agencies sponsored by the U.S. government can help you find special borrower programs. Call the U.S. Department of Housing and Urban Development (HUD) at 800-569-4287

The worst thing you can do? Hide, duck your lender or ignore the problem. Remember you have Choices.

Me and the Home Advocacy group at OzarksDreamTeam.com are here to help. Please call us if you have any further questions.