— a loan modification
— a forbearance agreement
–a short sale
–and a deed-in-lieu of foreclosure.
So what is the difference between a loan modification and a forbearance agreement? Here is a short explanation…
In a loan modification, the lender simply agrees to modify the terms of the loan.
For example, let’s say a homeowner has an adjustable rate mortgage that started with a “teaser rate” of 3%. But now, 7 years later, the interest rate has reset and is at 12%. This makes the payment unafordable for the homeowner. Assuming the homeowner qualifies, the lender may agree to modify the terms of the loan, to get the homeowner into a monthly payment, and a new interest rate, that they can actually afford. This is a great option when you can no longer afford your mortgage payment. Unfortunately, this option is not possible for many homeowners.
A forbearance agreement is a bit different. Instead of modifying the terms of the loan, the lender simply sets up a “payment plan” which allows the homeowner to pay off the balance of any delinquent payments over a specified period of time, typically 6-12 months. This may be a great option in case of a business loan (source: lendgenius.com/blog/when-does-a-merchant-cash-advance-make-sense/), or if you were unemployed for a short time and now have a job and so could afford to pay a higher mortgage payment for a limited time because in a forbearance agreement, in addition to their regular monthly payment, the homeowner must make an additional payment each month to pay off the balance of any delinquent payments.
These two options are 2 hopeful ways that you may be able to stay in a house when you have fallen behind on your mortgage payment…..or you think you will fall behind on your mortgage payment, and they are options worth exploring!
However, if you are not able to work either of these options out, you may be forced to consider selling your house and moving to a place you can afford. The Veenstra Team has a buyer list of several hundred people that are looking for homes to buy. Give us a call and we may be able to get your home sold quickly. If you home is “under water” (meaning that you owe more on your home than your house is worth in current market conditions) and you don’t have money to “bring to the closing table” (the difference between what you still owe and what your home is sold for) then a short sale may be your only available option.
The Veenstra Team has sold many short sale homes and has a team in place to be able to succcessfully close short sale transactions. It is no small feat to get a short sale closed. It takes a dedicated staff that is persistant in communicating and negotiating with lenders. It takes a dedicated staff that is skilled and has a great system for follow-up. We have that team in place.
A short sale is a challenging process AND we have a team in place to walk you through each step so you will not need to know about the process. You will not need to worry about what is happening. You will not need to be dealing with your lender yourself! You will not need to be begging the lender to help you. Our team does it for you — AND WE DO NOT CHARGE YOU ANY FEES to do this! How can we do all that work without asking you to pay? We are able to add our fees to the sale price of the house when we sell it, so you do not need to find extra money to hire us to help you.
If you are struggling to make your mortgage payments, or if you are already late on your mortgage payments, or if you need to understand your options for a mortgage payment you cannot afford, it is time to call the Veenstra Team. We keep information confidential and private. When you short sell your home, you will not have your name or address listed in the newspaper as a foreclosure. In many cases, you are able to stay in your house until we get it sold.
Give your Kalamazoo short sale specialists a call today at 269-350-5514.
By the way, our team also handles Grand Rapids short sales, Holland short sales, Saugatuck short sales, South Haven short sales, Grand Haven short sales, Portage short sales, Paw Paw short sales, Mattawan short sales, Martin short sales, Allegan short sales, Kentwood short sales and Fennville short sales. You can see that we handle short sales all over SW Michigan.
If you are behind on your mortgage, give us a call. You have nothing to lose and lots of gain!
Your short sale specialists!
The Veenstra Team
Evenboer Walton REALTORS