Del Toro does not provide counseling or legal advice. Please view the link on our home page for important links to Government websites structured to assist you in times of financial hardship. There are several options that may be pursued as an alternative to foreclosure:
Your Lender may grant you additional time to catch up on past due payments under an agreement called a forbearance plan. These plans are normally limited to a period of three to six months. You may be required to submit current financial information to determine whether you are eligible for this option.
A loan modification changes the repayment terms reflected in the note. If you are unable to pay the total amount outstanding or your loan has matured, this may be an option. Your loan could be modified to extend the term, convert an adjustable rate mortgage to a fixed rate loan, amortize the monthly payment over a longer period or add the past due balance to the outstanding principal balance to bring the account current. You may be required to submit current financial information to determine whether you are eligible for this option.
Sometimes the best resolution to a default is the sale of the property. You have the right to sell the property to someone else up until the foreclosure sale date. If the potential buyer’s offer is not sufficient to pay off your loan, we may agree to accept less than the total amount due under certain conditions. This situation is called a “short sale.” Contact us before accepting a contract on the property for less than the total amount currently outstanding on your account to determine whether this option is available to you.
Deed-in-Lieu of foreclosure
If you are unable to afford the current contractual payment and there are no other liens reflected on title to the property, we may allow you to deed the property back to us to avoid the time and expense of a foreclosure action. We are hopeful that we can help you work through your current financial difficulties but we need your cooperation to do so. Remember, time is of the essence. The sooner you contact us, the faster we can work together to get your account back on track.
AVOIDING DRASTIC MEASURES
If you do not contact us and advise us of financial hardship, or fail to respond to our attempts to contact you, serious consequences could result. Technically, if your payment is late, you are in default, and your lender (depending on the terms of your note) likely has the option of proceeding with a judicial or nonjudicial foreclosure. If you are foreclosed upon, your property will be sold at auction, and you will be evicted. While we can make no promises that your lender will not foreclose on your loan, we can promise that you have a much better chance of avoiding such a result by staying in close contact with us and advising us of any potential delinquencies before they occur.