Brockton, MA

What are the foreclosure alternatives for borrowers who are having trouble making their payments? What actions should a borrower take to pursue these alternatives?
There are several alternatives for a borrower that is having trouble making payments. Some of the alternatives available include:

• Repayment Plan: A Repayment Plan is used when you have experienced a temporary reduction in income or financial hardship. This option is structured to cure the delinquency over a period of time by paying a full amount, plus a partial payment on the delinquent amount, each month. An initial down payment is required. The amount of the partial payment will be based on your financial situation and your initial down payment. It is important to note, a repayment plan will only be considered if there has been a positive change in your financial situation. For example, if you were previously unemployed but have found employment, we may consider a repayment plan provided you are able to make an initial down payment, and you have the ability to pay the increased monthly amount due while keeping your real estate taxes paid current.
• Loan Modification: If you have experienced a permanent reduction in income due to a severe medical hardship, loss of a spouse, legitimate increase in expenses, or other permanent hardship, a loan modification may be offered. Based on your individual financial situation, your mortgage company may be able to change one or more of the original terms of your loan and reduce the monthly payment amount. It is important to note, a modification is done only in hardship situations.
• Pre-Foreclosure Sale: "Listing your Property for Sale." If you believe that you will continue to have difficulty making your mortgage and real estate tax payments, and that your hardship or reduced income is permanent, you may want to consider listing your property for sale. Housing values in your area may have declined which may result in an offer to purchase that is less than the total debt due on the property. In some instances, your mortgage company may accept less than the amount we are owed, but in order for them to consider this option, you must submit a package of financial information along with information about the proposed sale.
• Deed-in-lieu of Foreclosure: A deed in lieu of foreclosure is essentially a transfer of property to the lender in consideration for forgiveness of the debt. There are some advantages to this process over foreclosure. One benefit is that your mortgage company may waive any right to a deficiency judgment against you if the property is subsequently sold for a loss. A second advantage is that while a deed in lieu of foreclosure may be noted on your credit bureau record, you avoid having a completed foreclosure on your credit bureau record. We will consider accepting this option if the reason for the delinquency was beyond your control and you have been cooperative in seeking alternatives to foreclosure.
• Partial Claims-for FHA Loans Only: Your mortgage company may be able to work with you to obtain a one-time payment from the FHA Insurance fund to bring your mortgage current. You may qualify if:
  Your loan is at least 4 months delinquent, but no more than 12 months delinquent, and you are able to begin making full mortgage payments. When your lender files a Partial Claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first mortgage or sell the property.
• Full Reinstatement: Full repayment of all past due monies, including foreclosure expenses, to bring the loan current. This is the best option as it completely ceases foreclosure and any further collection action.
• Full Payoff: A Payoff, in which the note is paid in full, leaves no loan balance, and the lien against the real estate is released by your mortgage company.

What documents must be provided by the borrower when discussing foreclosure alternatives with the lender?
Before we can recommend the most appropriate workout option, it is important that we have a complete understanding of your current financial situation. As part of this process, we may need you to provide certain documentation, such as tax returns, recent pay stubs, bank statements, and a hardship letter outlining the events which have caused you difficulty in maintaining your monthly payments.

HUD-Certified Counseling Agencies:
To obtain more information about HUD-certified housing counseling agencies please call 888-995-4673 (HOPE)
or 800-569-4287.

Foreclosure Consequences
It is very important to know what can happen when a lender forecloses on your home. Not only will you lose your home and all the money you have invested in it, but the foreclosure goes on your credit bureau record and may negatively impact your ability to obtain another mortgage in the future. In some states, you can be held liable for any loss the lender experiences in selling the home.

The lender is required to report all foreclosures and deeds-in-lieu of foreclosure to the Internal Revenue Service, and you may have increased tax liability, since the IRS may view these events as forgiveness of debt.

Brian Fenstermaker has been selling real eastate full time for 20 years. He is a great listing and sales agent. Also in that time he has become a short sale specialist. You can reach him by e-mail at befrealtor@aol.com

I work with Buyers and Sellers, REO's and BPO's in Massachusetts.

I'm currently working with clients who are nearing a short sale status. Although they are 'house poor' they both have good work histories at their current jobs, and have owned this home for 12 years. The trouble came a couple of years ago when the wife got sick/injured. They went down to one income, had two teenaged kids, lost their health coverage, took equity from the home, yada,yada, yada.

I recieved written permission to discuss their options with their mortgage company and was told that they are good candidates for the Loan Modification program which would allow them to keep the house. I would be interested in hearing of any one's experiences with this. (Good, bad or indifferent.)

This blog could be filed under 'Agent with too much time on his hands.' The fact is that there is a lot of history in these old New England cities. Around the turn of the 20th century a group of engineers were brought into this bustling shoe manufacturing city of nearly 100,000. Their mission was to design a rail system that would expidite the transportation of output from the many factories.

The result of their labor was a rail line that ran the length of the city, including through the center. At no point, however, did any vehicles ever have to stop for,or cross railroad tracks. Close to a dozen points of the north to south rail line that intersected the east to west street traffic were designed so that one passed over, or under, the other. Most of the original bridgework is still in place, modified only to accomodate the advances in the automobile industry.

It's easy to point out to new homebuyers that Brockton was the hometown of Rocky Marciano, the only undefeated World Heavyeight Champion (49-0), and that Marvin Hagler held the Middlewieght belt for many years, or that more than half of the combat boots worn by American soldiers in WW1 were manufactured here. Good schools, parks and other recreational and civic benefits are always explained. but they always check out my railroad story. More than once, during follow up visits, clients will tell me that they noticed it because they thought I was making it up.

On Wednesday, The Brockton Housing Partnership established a program that will enable buyers to receive 100% financing on the purchase of foreclosures and short sales. This move will also put protections in place that will make sure these consumers do not default on their loans. Mass Housing will be providing borrowers with Mortgage Insurance Plus. The Name of this program is called Buy Brockton. To read the full story Click Here.