Foreclosure Alternatives
If you are behind on mortgage payments, or you are concerned that a recent major life event may put you at risk of falling behind, we are here to help!
Homeownership provides a wonderful sense of security, but trying times can challenge that stability. Many homeowners find themselves affected by circumstances beyond their control (e.g., illness, loss of employment, mortgage interest rate adjustments, investment losses, etc.), which can lead to difficulty making a monthly mortgage payment.
This is a challenging and complex situation to be in, but your Thompson Kane mortgage team is here to help. Reach out to us if you believe financial difficulties may impact your ability to make mortgage payments. We will conduct a thorough review of your individual circumstances and make recommendations for foreclosure alternatives.
Important Steps You Can Take
1. Gather your documentation
To prepare for a conversation with Thompson Kane about your options, it will be helpful for you to gather the following documents to share with your lending professional:
• Completed Thompson Kane & Company, Inc. “Borrower Financial Statement” form
• Income verification documents such as your most recent pay stub, Social Security benefit statements, unemployment, retirement, or public assistance earnings; prior year’s W-2s and tax returns (if self-employed)
• A letter from you outlining why you are unable to make your mortgage payments (i.e., lost your job, severe illness, or other financial hardship)
• Current mortgage statements
• Evidence of current insurance on the property securing your loan
• Evidence that the property taxes on the property securing your loan have been paid and are current
• Any recent valuations of the property securing your loan, if available (i.e., recent appraisal or current listing agreement if your property is for sale)
2. Call Thompson Kane
With copies of the documentation above in hand, give us a call at 800-228-9270.
If you are unable to afford your monthly loan payments and are facing foreclosure, the following options may be available to you:
- Forbearance agreement: Distributes your delinquent payments over a period of time, usually no more than 12 months. The monthly amount is added to the usual mortgage payment.
- Brings your account up to date within a specified time frame
- With a goal in sight, you can move forward knowing your home is secure
- Loan modification: Adds any past-due interest and escrow amounts to the unpaid principal balance, which is then re-amortized over a new term.
- Changes the mortgage note itself, giving you a fresh start on managing your home asset
- Brings your account up to date immediately
- Short sale: Allows you to sell your home and use the proceeds to pay off the mortgage if you are unable to maintain payments, even if the home’s market value is less than the total amount owed.
- Avoids the lengthy legal process involved in foreclosure
- Generally less damaging to your credit rating than foreclosure, if you remain current on your payments through the close of sale
- Deed in lieu of foreclosure: Allows you to transfer your property voluntarily to Thompson Kane if you are unable to maintain payments and cannot sell the home at market value.
- Avoids the lengthy legal process involved in foreclosure
- May be less damaging to your credit rating than foreclosure, if you remain current on your payments through the close of sale
Thompson Kane & Company is committed to assisting you in addressing your financial situation and considering potential alternatives to foreclosure. If you would like to engage a HUD-certified housing counseling agency, attorney, or another advisor to assess these options, please complete and submit the “Borrower Designation of Representation” form to Thompson Kane. Note that Thompson Kane retains the right to approve or decline any of the preceding options.
