Your Pinellas County Realtor
Cathy De Lorenzo

Foreclosure and Short Sale Information


If you are experiencing a Financial Hardship and struggling to make your Mortgage Payments, you have options and there are programs to help you.  Home Affordable Refinance Program, (HARP), or Flex Modification (Previously known as HAMP) may be options.  Below is some basic information about both programs with links to Fannie Mae for a more thorough explanation of these and some other programs that may work for you.   If you do NOT qualify for a Modification or a Refinance program,  you may want to consider  a Short Sale.  A Short sale is when as a homeowner, you sell your home for less then the amount you owe. Often, the homeowner has a Primary mortgage and a HELOC or second Mortgage.  In these cases, it would be more difficult to get a modification and or Refinance and a short sale is a good option if the Homeowner doesn’t want a Foreclosure.


What is HARP?

HARP is unique—it’s the only refinance program that enables eligible borrowers with little to no equity in their homes to take advantage of low interest rates and other refinancing benefits. There have been several changes to HARP, but the primary enhancement removed the limit on the amount that homeowners could be “underwater” (owe more on their mortgage than their home is worth). With that change, many homeowners who were not eligible will now qualify. Program ends December 31, 2018.

HARP may be an option if:

  • You have had a good payment history for the past 12 months. That means having no late payments in the last 6 months and no more than one 30-day late payment from 6 to 12 months ago.
  • Your home is your primary residence, 2nd home or investment property.
  • Your home value has decreased.
  • You have limited equity or your first mortgage exceeds the current market value of the home (i.e., your loan-to-value ratio must be > 80% to be eligible).

Your loan is owned or guaranteed by Fannie Mae or Freddie Mac. Check the Fannie Mae Loan Lookup tool.

Your loan was closed on or before May 31, 2009 (this date can be found using the loan lookup results).    **COPY AND PASTE INTO YOUR BROWSER




Experiencing a financial hardship and struggling to pay your mortgage? The Flex Modification, which replaces the Home Affordable Modification Program (HAMP), is designed to assist homeowners, like you, with much needed payment relief.

TIP: The earlier you apply for the Flex Modification, the greater the payment relief you may receive.

The Flex Modification:

  • Lowers your mortgage payment by as much as 20% (with an adjustment of your interest rate, loan duration or forbearance of a portion of your unpaid principal balance)
  • Adds the past due amount to the unpaid loan balance and recalculates your monthly payments over the new loan term (so you won’t have to pay the past due amount upfront)
  • Makes your home loan current (once you complete a modification trial period plan and execute modification documents)
  • Helps you avoid foreclosure and stay in your home (with affordable mortgage payments you can sustain)         **COPY AND PASTE INTO YOUR BROWSER


What is a short sale?

“I want to avoid foreclosure, but I can’t sell my home for what I owe on my mortgage. What can I do?

A short sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds. Depending on your situation, you may be required to make a financial contribution to receive a short sale.

A short sale is an alternative to foreclosure and may be an option if:

You are ineligible to refinance or modify your mortgage

  • You are facing a long-term hardship
  • You are behind on your mortgage payments
  • You owe more on your home than it’s worth
  • You have not been able to sell your home at a price that covers what you still owe on your mortgage

You can no longer afford your home and are ready or need to leave  **COPY AND PASTE INTO YOUR BROWSER


**With any of these options, and specifically a Short Sale, you will want to consult with an Attorney and Tax Experts regarding your own unique situation.  I am not an Attorney, Accountant or Tax professional and cannot give Legal or Financial Advice.  I can help you with the paperwork and short sale specifics, marketing of your home and assist with the contract and closing details. Call me for more information I can Help!