Frequently Asked Questions

I've missed a few mortgage payments, what will happen?
Your home may undergo the foreclosure process, but there are ways for you to prevent this from happening. This is the time to contact us and find out what your options are.
What should I do once I'm behind on my mortgage payments?
Don't wait, get help early! By actively working to resolve the issue as soon as possible, you greatly increase your chances of avoiding the loss of your home through foreclosure. If you even see the possibility of missing a payment, contact your lender and explain your financial situation. This act of initial contact, before letters of delinquency arrive, will help your lender understand that you are facing issues that impede your payments, providing your lender an incentive to find a proper "work out" resolution, or to begin modifications to your loan.
What is a "work out" resolution?
Commonly, the term "work out" resolution is an agreement where you continue making payments on your past due amount over a period of time, or a modification to your loan to lower your interest rate, or an extension loan period that will help lower your payments.
I am in the foreclosure process, should I stay in my home or leave?
Some lenders will not consider you for a short sale if you move out. They want the owner to remain in the house in order to continue to take care of it and not leave it vacant. Abandoning your property may have severe negative consequences on your qualification for assistance. We've had owners move out in the middle of a short sale and when the bank discovered they moved, the short sale was cancelled and the home foreclosed on. If there's a good reason for having to move such as finding a new job outside the commuting area, the bank will consider the reason.
Do you have any other advice?
Always be wary of potential scams. Any person or company offering a solution that sounds overly optimistic may be trying to take advantage of you during your time of financial troubles. Some warning signals of a scammer include anyone who charges a fee before any services are completed.
Why would my lender rather help me stay in my home than foreclose?
There are several reasons your lender may be interested in other options than foreclosure. Most times, the lender will take substantial financial losses, on average $50,000, from a home foreclosure. Mortgage companies are not interested in owning and selling homes.
How common is foreclosure?
Unfortunately, foreclosures are becoming more common and happen to many Americans. Although the number of foreclosure filings vary from state to state, and even from one financial quarter to the next, the number of filings nationally in 2008 was 3.1 million for 2.3 billion U.S. properties. This is an 81% increase from 2007 and represents 1 in 54 housing units in America having received at least one foreclosure filing during 2008. Foreclosures in the Dallas-Fort Worth metroplex average about 5000 per month.
If my house goes to foreclosure or is sold in a short sale, will I owe the amount of the loan remaining?
Before former President George W. Bush left office, he signed a Mortgage Forgiveness Debt Relief Act of 2007 that says you may not be liable for the difference. However, there are exceptions and your attorney or CPA would be the best source of information for your particular situation. A good source of information is the IRS Publication 4861, Cancelled Debts, Foreclosures, Repossessions and Abandoments.
What if I'm in Bankruptcy, can I still do a short sale?
Discuss that with your bankruptcy attorney, they will need to approve the short sale.
How long does a short sale take?
It depends on who the lender is. Lenders are getting better at processing the short sales and have hired additional staff. They were severely understaffed when this housing crisis began. They are being more cooperative and proactive to get the homes sold and help the homeowner rather that letting the house go to foreclosure.