Behind in mortgage and not sure what to do? | LAURA DEE MYTINGER, ABR, CRS
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LAURA DEE MYTINGER ABR, CRS, SFR
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913-593-3550
lauradee@
ReeceNichols.com

Licensed in KS, MO
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Services Available > Homeowner Assistance

Distressed Homeowner?


Behind in mortgage payments and not sure what to do?



Being a few payments behind in a mortgage makes the small word distressed hardly capable to describe all the anxiety, fear and frustration that can often come with this type of situation. Luckily there are choices, programs and paths available to help.

Over the past 5 years, I’ve worked on behalf homeowners, buyers and lenders to successfully complete the plan best suited for the situation. Each person, each property and each situation is unique. Unfortunately there is a lot of “uniqueness” going on right now in the Country relating to housing. So if you are in a distressed situation, you are not alone!

There’s a lot of information available on various
programs but 
the key to being successful 
is taking action!

In general, the recommended path for a homeowner in distress is to speak with the Lender about modifying the loan. It will require paperwork from the homeowner such as 2 paystubs, 2 bank statements, a personal financial statement, 2 tax returns and a hardship letter as to how/why the modification is needed. The lender will review the information to determine if the loan is eligible for a modification. There are criteria based on the information you provide that the lender uses to “plug in” for eligibility determination.

If a loan modification is not possible, then the path to help the homeowner get to financial recovery is to sell the property. If the property cannot be sold at a price to pay off the existing loan(s), then it becomes a Short Sale requiring lender approval. Lenders like to work with homeowners in getting the property sold. As a result, the reporting of a short sale has less damaging impact on a credit report than a full foreclosure. There have been reports that folks who have had a short sale were able to buy another home 3 years later! In foreclosure it’s 7 years and it is typically asked about on loan applications. The same homeowner information is required with a short sale as with loan modification.

Some lenders will consider deed-in-lieu after a time period in which a short sale listing is unable to attract a buyer. The important thing to keep in mind is that lenders do not want to own property. They want to loan money on property to make money. That is why Lenders would prefer to work out a loan modification or to have the property sold.

If you are in a distressed situation and are not sure what to do, need advice or want help to make that initial contact with your lender regarding options, I am happy to help (my schedule permitting). 

Please call me to arrange a complimentary
15-20 minute meeting
to assess your situation and develop a plan.

(Be sure to bring your latest loan statement and any other
documents your lender may have sent.)