So you want to know how to make a difference?  The secret is knowing what options that your borrowers have, and how much that they neeed you.

Realistically, your borrowers will have todo something and just about ANYTHING is better for them  than a forclosure.    So here are the options that you can steer your borrowers towards:

Borrower’s Options

Secret – “It is amazing how much you can see by just looking around” Yogi Berra

The borrower does have options, they just have to look for them. The lender does not
want to own this home; they want to continue to collect the monthly payments. That is
one of the most profitable ways the lender can make money. In today’s marketplace the
lender loses money when they foreclose. All roads do not always lead to sale, as you do
your evaluation let your client know they have options.

Secret – A large percent of borrowers who enter a program end up in foreclosure
anyway, it is not your job to ever push your clients to sell. Allow you clients to make the
decision that is best for them. If they want to keep their home send them back to the
lender, you win points with your Clients, the Lender and the Universe.

Secret – “There will always be enough ___________”  Tim Harris

You fill in the blank, money, deals, buyers, sellers. You do not have to have this deal
now, do the right thing and you will attract a lot more ________. You fill in the blank

Specific Options Homeowners’ Have:

Forbearance – lenders may let a borrower pay less than the full amount of the mortgage,
or skip a few payments, if there is a reasonable plan to bring the loan current.

Reinstatement- A homeowner may be able to make a payment that covers all of the
previous late payments, usually at the end of a forbearance period.

Repayment Plan- Lenders may allow a borrower who has fallen behind to make
additional payments each month until the past due amount has been paid.

Loan Modification- Lenders will sometimes change the terms of a loan to help a
homeowner avoid foreclosure. Options include these:

Adding all the missed payments to the loan amount and increasing the monthly

Adding all the missed payments to the loan amount and increasing the monthly payment to cover the larger loan.

Giving the homeowner more years to pay off the loan, lowering the interest rate, and/or forgiving part of the loan to lower the monthly payment.

Requiring amounts for taxes and insurance to be included with the monthly mortgage payment to avoid large bills in addition to the mortgage.

Debt Forgiveness- A homeowner could be allowed to sign over the property to the lender
in exchange for debt forgiveness, an option that can damage credit but one that is better
than having credit history of foreclosure.

Short Sale – A short sale is when the lender agrees to accept less for the property
than is actually owed on the property.