1. Reinstatement – If a homeowner missed payments for temporary reasons that have been resolved, then the homeowner has the option to reinstate the mortgage, even up to the date of the bank sale.

In order to reinstate a mortgage, the homeowner has to pay all missed payments, late fees, and legal fees that are due up to the date that the loan is reinstated. The owner requests this amount from his mortgage company in the form of a reinstatement letter. This letter will typically expire after thirty days, since the amount owned is time sensitive. A simple reinstatement will require a one-time payment in full of all delinquent funds. Once the owner makes the payment, the mortgage is reinstated and they are free to make payments as before.

2. Sell the Property If the homeowner has equity in their property, they can sell it and use the funds from their equity to cure the foreclosure. Unfortunately, many homeowners believe that they have to sell much faster than they do and end up taking the first offer that comes along. We can help you harvest as much of their hard-earned equity as possible.

3. Rent the Property In some cases, a homeowner facing foreclosure will have payments low enough to be able to rent the property and keep up the mortgage payments. It is imperative that taxes and insurance be included in the calculations to establish whether or not market rent will cover all amounts required to keep the mortgage current.

4. Short-Refi This relatively new phenomenon shows just how far some mortgage companies and lenders are going to avoid foreclosing on properties. This process involves the refinance of a home with a reduction in the principal balance and often the interest rate as well. The homeowner will have to qualify for this process both in showing a hardship as well as showing the ability to pay the new mortgage often through a fully documented qualification process.

5. RefinanceThe homeowner may be able to refinance if they have sufficient equity, income, their credit has not been too badly damaged, and the property can appraise for the refinance amount. This is also typically a short-term solution since the payments on the property typically go up considerably due to the refinance. Again, if the issue that made the homeowner late in the first place has been resolved, then sometimes this will work. But in many cases, this is just a foreclosure waiting to happen.

6. Service Members Civil Relief Act (SCRA) – The SCRA was signed into law (public Law 108-189) on December 19, 2003. This law provides certain protection to military personnel that are in foreclosure in specific situations. The law also provides service members other protections. The Act can provide the following kinds of relief:

* Mortgage relief
* Termination of Leases
* Protection from eviction
* 6 percent cap on interest rates
* Stay of proceedings
* Reopening of Default Mortgages (Click here for more info .)

As it applies to mortgages, the law reads:

MORTGAGES: The SCRA can also provide temporary relief from paying your mortgage. To obtain relief, a military member must show that their mortgage was entered into prior to beginning active duty, that the property was owned prior to entry into military service, that he property is still owned by the military member, and that military service materially affects the member’s ability to pay the mortgage.

This relief is only temporary and in many cases the most prudent course of action for a service member is to sell the property. This is a personal decision based on their specific financial situation.

If you’re on the edge of losing your home, contact The ODea Group for a free, confidential, no-obligation consultation.