Five Options for Homeowners who are struggling to make their mortgage payment:

•  Deed-In-Lieu - A process where the borrower signs a “Deed-in-lieu” of foreclosure AND the lender accepts it. 
• Foreclosure - A legal process where the secured lender takes back the property though an instrument called the “Deed of Trust”. 
• Loan Modification - A process where borrower will have to qualify for a reduction in monthly payment by a reduction in the interest rate or a lengthening of the amortization schedule; or both. Lenders will not reduce the principle amount. 
• Short Sale - A process where the borrower qualifies with the lender(s) to accept a short payoff only after the property has secured a buyer to purchase the home at a fair market value. 
• Short Re-finance - Borrower must be on time with payments; complete re-finance where the existing lender accepts a short payoff. The current market is not experiencing these types of re-finances.        

• Borrower has a past Foreclosure on credit report - 5 to 7 years before borrower can qualify, 680 FICO Score and 10% Minimum Down Payment
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• Borrower has a past Deed In Lieu - 4 to 6 years before borrower can qualify, 680 FICO Score and 10% minimum Down Payment
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• Borrower has a past Short Sale on credit report - 2 years before borrower can qualify, no minimum FICO Score and Will Qualify for ANY of Government Backed Mortgage Programs.