Your First Home

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Rodney Kennedy

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Nashville - Franklin
9175 Carothers Parkway, Suite 110
Franklin, TN

Short Sales and Foreclosures are very common these days; however, this does not necessarily have to be your First choice. Explore other options in order to save your home.


Talking to the lender, or loan servicer, the company that collects the
payments, should be one of your first steps. The earlier you call, the
better your chance to work out a solution.

Here are some options:
  • Loan Modification. Loan servicers can help you catch up on late payments or amend your mortgage to make it more affordable. For homeowners who face losing their home, a loan modification is often the most effective way to avoid foreclosure.
The options include:
  • Adding all the missed payments to the loan amount and changing the monthly payment to cover the larger loan.
  • Giving you more years to pay off the loan, lowering the interest rate, and/or forgiving part of the loan, to lower your monthly payment.
  • Switching from an adjustable rate mortgage to a fixed rate mortgage, so you can avoid higher monthly payments.
  • Requiring amounts for taxes and insurance to be included with your monthly mortgage payment so you avoid big bills in addition to your mortgage.

Other options include these:
  • Repayment Plan. If you can start making payments to catch up, the lender may let you pay an additional amount each month until you are caught up.

  • Forbearance. Lenders may let you make a partial payment, or skip payments, if you have a reasonable plan to catch up. Tell your lender if you expect a tax refund, a bonus, or a new job.

  • Reinstatement. Reinstatement refers to making a payment that covers all your late payments, usually at the end of a forbearance period.
Sign Over the Property to the Lender in Exchange for Debt Forgiveness (often called “deed in lieu of foreclosure”). This can hurt your credit, but is better than having a foreclosure in your credit history.

If a Short Sale seems to be your best option, contact a Certified Short Sale & Foreclosure Resource (SFR) Realtor today.

Information from the National Association of Realtors(r): Are You Having Problems Paying Your Mortgage?