Good news! The government is now allowing loan modifications on second mortgages, lines of credit, etc., thereby enabling previously ineligible homeowners a second chance to relieve financial stress. These second loan modifications can be done in one of a few ways, such as reducing the interest rate and extending the life of a loan, or by automatically reducing payments on a second loan when the primary loan is modified.

Additional short sale options are also becoming available! Below is an excerpt from an article on Realty Times:

Under the new short sale incentive, lenders can receive a $1,000 payment from the U.S. Treasury for allowing the owner to sell the house for less than the amount owed on the mortgage and for accepting the proceeds as full repayment, rather than treat it as a short sale.

Lenders can also receive $1,000 for accepting a deed-in-lieu transaction, in which the deed is simply transferred to the lender instead of going through a costly foreclosure.

Homeowners who agree to short sales or deed-in-lieu deals can receive up to $1,500 in closing costs. To help stop second mortgages from blocking the deal, the Treasury will pay second lien holders up to $1,000 to relinquish their claims in such transactions.

Read more about the stipulations and details here!

Are or someone you know you facing possible foreclosure? You are not alone! And we can help. Zac is a Certified Distressed Property Expert, which uniquely qualifies him to work with homeowners who are struggling to make their mortgage payments. One option is a short sale, where, due to extenutating circumstances, your bank will let you sell your home in exchange for whatever sale price you can on your property. Our office is currently working with a number of short sales and has the resources to help our neighbors and community avoid foreclosure. For more details, please visit our website!