Do you want to stop the foreclosure and keep your home?


Our number one wish for you is to be able to remain in your home. 

First and foremost, TALK to your lender!  Respond to their letters by calling the phone numbers provided and ask for assistance.  Ignoring the problem is the NUMBER 1 action most all people take who are in default of their loan. We have seen it, and we have heard home owners say this.  Embarrassment, shame, and denial are all normal feelings in your situation, but none of these will help you.  Pick up the phone and call your lender, explain briefly why you fell behind in your payments, and ask for assistance and ask to hear your alternatives. The longer you wait, the less options you may have, but please do not assume anything and just call your lender.


Websites for Assistance and Information  HUD''''''''s Guide to Preventing Foreclosure  When a Lender Won''''''''t Work With You


Preventing Foreclosure by Contacting Your Lender  

Here are some options that may be available to you:

1.  Special Forbearance   Your mortgage lender may be able to arrange a temporary reduction in your payment amount or even let you delay making payments for a period of time.  This may help if you have experienced a temporary setback, and can now pay your normal payment if you could get beyond the late payments and penalties all due at one time.  Of course, the amount missed may be placed onto the end of your loan, or an additional repayment plan may be devised.  Ask!


2.  Mortgage Modification or Loan Re-Amoritization  Your lender may refinance your loan, especially if you have an adjustable rate mortgage or a high interest loan.  This will only work if your income remains high enough to qualify for the payment amount today. Ask!

Or, you may ask your lender to do a Loan Re-Amoritization on your current loan.  If you owe $150,000 on your loan, but because of missed payments and the penalties, you also owe $7500.  Your lender may recalculate your loan and new payment to reflect your owing $157,500 now. Depending on the interest rate they allow you, your payment may increase slightly to cover your missed payments, but you will now be allowed to remain in your home and the foreclosure process will stop!


To numbers one and two above, you may be saying, "But Teresa, my financial situation has changed drastically and I simply cannot afford this house payment any longer!" 


"We are needing to move because of work opportunities, divorce, lost a job, etc. and we have TRIED to sell this house and no one wants to pay us what we need to get out from under it.  What are my options NOW?"



3Deed-In-Lieu Of Foreclosure  You may voluntarily "give back" your home to your lender, but you will have to vacate the home immediately.  This may still be classified as a foreclosure on your credit history. Today, most lenders are requiring that you try to short sale the home before they will consider a deed-in-lieu acceptance.


4.  Foreclosure The legal court ordered process where your lender repossesses your home.  Though not every homeowner who is underwater on a mortgage need worry, many are finding that a foreclosure or other form of housing loss can lead to a big tax obligation.   Read the Wall Street Journal article:


5. Short Sale  Today, more and more homeowners are turning to Short Sales to sell their homes and save their credit from a full-blown foreclosure and the ramifications of it.  In a Short Sale, a lender agrees to accept less money for your home from a new buyer than what you now owe on the house. Usually, you may remain in the house until the sale closes to the new owner.

You may have tried to sell your home by owner to pay off your lender, and did not succeed.  Your home in 2009 may not be worth what you paid for it a short time ago, and a new appraisal price for a new buyer would not cover your old loan. You may assume that if you do not have enough to cover the cost to pay off your loan, you certainly do not have enough left over to pay a real estate agent to assist you.

Here is the beauty of a Short Sale: Your lender may accept a lower price for your home and will cover the costs for real estate professional services to assist you in locating a buyer and handling the transaction including your closing costs. In rare circumstances, your lenders may cut your agent commission to a point where you may be asked to make up the difference. Your agent can work on your behalf while preventing a full Foreclosure from affecting your credit rating.

If you wish to discuss the possibility of doing a Short Sale, call me at 251-554-2661.   


Frequently Asked Questions

The one reality about today?s housing market is that many people have more questions than answers. The following information is intended to help you or someone you know better understand your situation.

Do I qualify for a short sale?


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

1.    Financial Hardship- There is a situation causing you to have trouble affording your mortgage.

2.    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.

3.    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 a mortgage modification?

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

        Your interest rate

        Your principal balance (through a reduction)

        Your loan terms (example: from an adjustable to a fixed rate)

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

Why would a lender modify my mortgage?


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


What do I need to qualify for a mortgage modification?

According to the Making Home Affordable Web site (, you will need the following information for your lender to consider a modification:

           Information about your first mortgage, such as 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 such as student loans and car loans

           Your most recent income tax return

           Information about your savings and other assets

           Information about the monthly gross (before tax income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources

If applicable, it may also be helpful to have a letter describing any circumstances that caused your income reduce 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 information above ready to discuss with them and call your customer service line to ask them what options you have available. If the person you speak with does not understand what you are asking, you can ask to be referred to one of the following departments (different lenders have different names for these departments):

        Loss Mitigation

        Mortgage Modification


Prior to contacting your mortgage lender you can quickly complete an eligibility test at This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP).

What is a 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 if I do not qualify, can not afford my home, and owe more than it is worth?

You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not work with you to reduce your payment, you may want to consider a short sale. Agents with the Certified Distressed Property Expert Designation have undergone extensive training in how to process and communicate with your lender to oversee your short sale.

A short sale allows you to sell your home for less than what you owe and avoid foreclosure. Speak to your market expert to see if you may qualify.

What are the qualifications for a Home Affordable Refinance?

According to the resources released by the government, 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 nott been more than 30 days late on your mortgage payment in the last 12 months, or if you have had the loan for less than 12 months, you have never missed a payment)

          You believe that 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 sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan


With Fannie Mae and Freddie Mac now in Short Sales, here are a few resources that may be of help.

It obviously helps to know if Fannie or Freddie owns the loan.

The Fannie Mae & Freddie Mac Loan Lookup Links below enable mortgage borrowers to quickly determine if Fannie Mae owns their loan by providing a street address, unit, city, state, and ZIP code

Fannie Mae

1-800-7FANNIE (8am to 8pm EST)


Freddie Mac

1-800-FREDDIE (8am to 8pm EST)


Other Links that may be of help to you:

With Fannie Mae and Freddie Mac owning 75% of the Mortgages in the U.S. there is a 3 in 4 chance that you have a Loan with Fannie or Freddie