Alternatives to a Short Sale:
1. Forebearance: Your lender will allow you to delay making payments on your Destin Florida real estate for a period of time, but will add these payments back to your loan. They may be added to the end of your loan, or with a separate payment plan.
2. Re-Amortization: Your lender may add missed payments to your balance, and recalculate a monthly payment taking into account the missed amounts. For example, if you owe $200,000 on your mortgage, and you have missed $4000 in payments, they may recalculate a new monthly payment based on $204,000 mortgage. This will increase your payments somewhat.
3. Re-Finance: Your lender may agree to change the terms of your loan in order to reduce your monthly payment.
4. Deed-in-Lieu of Foreclosure: You give your lender will take title to the house and may agree to waive a deficiency judgment against you. This is still recorded as a foreclosure on your credit.
5. Foreclosure: Proceeding in which the mortgage holder sells or repossesses your property. The lender may then seek a deficiency judgment against you for the unpaid balance. A “foreclosure” is the most harmful occurrence of the alternatives.
