| Brent E. Baris, P.A. |
| A Law Firm Dedicated to Real Estate Matters Serving North Central Florida |
Phone: (386) 454-0688 (904) 755-1620 Facsimile: (800) 607-5560 |
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FREQUENTLY ASKED QUESTIONS 1) What are some alternatives to foreclosure? Repayment Plan – This is ideal for a short term financial difficulty that has caused your payments to get behind. Repayment plans allow for your delinquent amounts to be repaid over a short period of time, typically three to six months. You continue to make your current payments on time along with an agreed additional amount each month to bring your delinquency current. Conditional Forbearance – this is designed for a short term financial difficulty that has been or will be very quickly resolved. This option may allow for reduced payments for a fixed period of time (typically 3 months), may suspend foreclosure proceedings pending, and can be used in conjunction with repayment plans. Forbearance – this is designed for short term financial difficulties that will be resolved in the next three to six months. This option may allow for reduced payments, no payments for a specified period of time. Once payments begin, a repayment plan may also be used to bring the delinquencies current. Loan Modification – This agreement will modify the terms of your existing mortgage loan. They may include reduction of principal, reduction of interest rate, increase in loan term or a combination of all. This work out option is ideal for a longer term solution to keep your loan payments current. Short Sale – A short sale is a viable option when other options have been exhausted or should you not desire to stay in your home. Short sales are designed for properties where value has declined and in many cases where your loan balance exceeds the property value. This option allows you to obtain lender approval to sell your home for less than what is currently owed on it. Short-sales have credit and tax implications and should be carefully reviewed by financial advisors. Deed-in-Lieu – This option is an option where you voluntarily deed your property back to the lender in exchange for a release from all obligations. This option will adversely affect your credit. 2) What is the cost and when is it due? We charge an up-front retainer fee of $2500 for one mortgage. If you have two mortgages, the fee is $3000. 3) Is the retainer fee refundable? Yes, $500 of the retainer fee is non-refundable. 4) What if I change my mind? You are always in control of the situation and can change your mind and stop the re-negotiations at any time. Fees above the non-refundable portion will be calculated for work already performed and the remainder of your retainer fee will be reimbursed to you. 5) Do I have to keep making my mortgage payments? While it is never a good idea to not make your mortgage payments, we and your lender understand that you are having financial difficulty and may not able to maintain the current mortgage payments at this time. If you retain us, we will discuss your options as we work with your lender. A partial payment during the process may be needed to establish your intent to work with your lender towards a permanent resolution. 6) What happens if I sell my home while you're re-negotiating my mortgage? If you sell your home during re-negotiations then further work out options with your lender are no longer required. In the event you are able to sell your home but for less than you currently owe on your property, we may be able to assist in a short-sale approval from your lender. 7) How long will it take to have a resolution? We estimate the process to take from 60 to 120 days although the time is entirely dependent on your current lenders. The type of workout option we are negotiating will also determine the length of time to process and approve your request. |