A loan modification is any change or modification to the terms of your original home loan. Depending on the type of loan you have (Conventional, FHA, VA, etc.), there are several loan modifications that could be available to you.

Before you consider this route, you are behind in payments or in foreclosure, you have to disclose this information to your listing agent. It can take 30 to 45 days to close, and if your foreclosure date is before the closing date, then this will not be an option for you.

If you are behind on your mortgage payments, in pre-foreclosure or in foreclosure on your home, it is not possible to refinance your mortgage. That said, it is critical you trust your mortgage broker as they might charge you appraisal fees, loan fees, and broker fees before letting you know you do not qualify.

If you give ownership of your home and deed it back to the bank, this is called a deed in lieu of foreclosure. While your bank will always accept this option, it is not a good option for you. The bank may place a foreclosure on your credit, and if the bank sells your house for less than what you owe on it, you could end up with a 1099-C, which is sent to the IRS as additional income.

A Forbearance Agreement may be a smart choice for you when you don’t qualify for a loan modification. A Forbearance Agreement is an agreement you arrange with your bank. The bank will ask for attorney fees and also 40-50 percent of your back payments. From there, your remaining back payments are equally divided between the next six to12 payments. This will raise your monthly payment during that time.

In a Subject To, you will deed your house to us through a Warranty Deed. From there, we will bring your mortgage current by paying your back/late mortgage payments. We will then make all of your monthly mortgage payments until your house is sold or refinanced, whichever comes first. Once complete, we will file the deed at the courthouse, which protects both my interests and your interests.