As you can see from Part One, Regions Bank offers mortgage payment assistance to help you go through financial hardship. But, do you notice that those are great ways for financial problems that are not too serious? What if your situation becomes worse?
Well, in that case, you might have to give up your ownership of the property. The good news is that Regions Bank also has a couple of ways to give you full or partial debt relief. Take a look at the following options, and hopefully you can find a solution right for your situation.
I. Temporary Forbearance while Selling Your Home
A temporary forbearance plan will provide a short-term reduction or suspension on your mortgage loan. Regions Bank and you will reach an agreement to suspend further foreclosure actions while you are trying selling your home.
Of course, this agreement is only valid during a predetermined period. Therefore, you have to sell out the house in a hurry and close the sale before the agreement becomes expired. In the case you have sold your house successfully, the bank might consider not taking any additional foreclosure related action before the closing, even though it is still a week or a month ahead.
Temporary forbearance is surely a perfect option for you to get back on your feet. You know, it can be a chore to deal with your real estate broker while you still have to worry about missing your mortgage payment.
As a lender, Regions Bank is very considerate and willing to help you avoid foreclosure. But notice that only those people who have recently experienced a reduction in income or a significantly increase in living expenses might be qualified for this option. Besides the reason why you fell behind in your mortgage payment, the bank might also require you to prove that your current financial problem won’t happen again.
II. Pre-foreclosure Sales (Short Sale)
Well, pre-foreclosure might not be a great choice. But when you can no longer afford to make timely payment and keep the property, pre-foreclosure is your only option.
The worst thing is that property value in your area might have decreased a lot during recent few years. As a result, you could only sell your house at an incredibly low price which might be even not enough for you to repay the outstanding balance of your mortgage loan.
In that case, don’t bother to negotiate with your broker or the buyer. Simply turn over the proceeds of the sale to Regions Bank, and you are likely to (but not always) get a satisfactory answer.
This option is highly recommended if your home value is much lower than the amount you still owe the bank. It offers you a chance to use the Net Sale Proceeds to satisfy your mortgage debt. So, if you have no choice but to move out of your house, give a thought to pre-foreclosure.
III. Deed In Lieu
Totally understand that this will be the last thing you want to do to your house. But do you have any other options? No. So, to avoid foreclosure, you have to surrender your property voluntarily and use a deed in lieu of foreclosure to deed it to the bank to satisfy the debt.
Normally, this is an appropriate solution for you to avoid the worst situation – having your property taken away by the bank. Besides, this option can bring you a few benefits.
Once the bank gets the house back through deed in lieu, the foreclosure process will be ended several months before the date it’s scheduled to be completed. And since your mortgage loan will be satisfied in full, you no longer need to repay the debt and have no legal title to the house. That means, you can finally focus on your financial problems without extra burden of making monthly payments.
One more reason for you to surrender your house by deed in lieu is that it can positively affect your credit history when compared to a full foreclosure. This option shows as a homeowner, you have done whatever you can to save the home before the foreclosure was completed. Plus, it ends the foreclosure process and thus helps you avoid missing a few more payments.
However, you have to understand that deed in lieu is not the best option you have. And it won’t improve your credit score. It’s just one step better than the foreclosure. So, remember to contact Regions Bank to make sure that there is nothing else you can do to avoid foreclosure before you apply for deed in lieu.
It’s really a tough decision to make. Fortunately, you are not alone. Regions Bank is always here to help. If you have no idea about which solution you should choose, feel free to call the bank. Or you can simply send an email to Regions Bank’s in-box, with your property address and phone number included. Then, a loan counselor will contact you.
