Although it may not seem as such, there are, in fact, several options to individuals facing foreclosure. To help narrow down these options and decide which route to take, you need to first determine, very simply, what your intentions are. Do you want to keep your house or do you want to sell it?

Below are several green trust cash bad credit loans lenders only workout options first for those intending to keep their house followed by loan workout alternatives.

Loan Modification

A loan modification involves a lender or loan servicer modifying the terms of an existing green trust cash 5000 loan native american to make it more affordable for a borrower in default (and now even including those whose loans are in jeopardy of going in to default). The terms commonly modified are the interest rate, the term or length of time of the loan and even the principal amount owed. A loan modification is not a loan refinance, second mortgage or any other type of loan. Loan modifications have now been made even more attractive in the eyes of lenders as a result of several government incentives.

Aside from the loan modification, which is the ideal loan default resolution, there are several other loan workout options. Your lender may attempt to steer you toward these options first because it allows them to keep the terms of your mortgage in tact and, of course, make the most amount of money.

Repayment Plan

Short of full re-instatement, the repayment plan option is usually the least desirable of all the workouts. With the repayment plan your lender will take your past due amount and divide it over a period time, usually 6 to 12 months, adding it to your current monthly payment until the past due amount is paid. Your lender will determine how much to increase your monthly payment by how much you show left over at the end of the month according to your income and expense statements. The problem is that this increases your current monthly payment causing an even greater financial hardship.

Another problem with the repayment plan is if a payment is missed in the future the new agreement will have been breached and you will be right back in default, which is why the majority of these type of plans go delinquent again within six months.

The repayment plan is ideal for the lender because it allows them to keep the terms of your existing mortgage the same. This is just another example of your lender treating people like numbers, but unfortunately for them they are really just shooting themselves in the foot when these plans lead to more defaulting.

Unfortunately for those unknowing homeowners who attempt to go it alone, this is the first plan the lender will attempt to push on you.

Forbearance Agreement

Also referred to as a "special forbearance agreement", this type of plan also keeps the terms of your existing mortgage in place. The lender simply "forbears" the past due amount and capitalizes it to the loan. This simply creates a new amortization schedule with a new payment and also allows you to just continue to make payments as if you were current. Your lender may choose to add the number of months past due to the existing remaining loan term and then re-amortize the loan using the existing interest rate. You may have heard of a lender "adding the past due amount to the back end of the loan." That seems to be easier to understand. While these plans aren't necessarily a bad thing, the current loan modification program supported by the government is far more ideal.

Loan Workout Alternatives

For one reason or another, and usually for a lack of income, not all individuals will qualify for a loan modification or other loan workout, despite any intentions to keep the house. For those individuals, there are several alternatives usually resulting in the house being sold or given back to the lender.

Listing Forbearance

A listing forbearance is similar to a forbearance agreement accept you must agree to list your home with a realtor in effort to sell it while continuing to make monthly payments. This option is for those who currently cannot afford their home even if offered a loan modification. This option is also not available in all states. The term for the listing forbearance is usually six months. The good thing about this option is if at any time during the listing period your financial situation changes, you may be able to then qualify for a loan modification or some other loan workout or even just buy some time to fully re-instate the green trust cash direct cash loan lenders online. Also, your lender understands you're not able to make your current monthly payment so the terms are modified temporarily to give you a much lower payment while the house is on the market. This fact might also allow you to save up enough to put toward another workout or even reinstate.

Short Sale

If selling your home is your only option you may want to consider a short sale. A short sale is simply a discounted payoff of your existing mortgage. Your lender agrees to accept less than what is owed as full satisfaction of their lien. Why would they agree to do this you ask? The bottom line is lenders aren't stupid. Every decision made is determined to be in their best financial interest, which means by taking less than what is owed the lender has determined it is more cost effective to do so than to let it go to the sale, take the house back, rehab it if necessary and then list it with a realtor to get it sold. Taking the short sale may get the non-performing asset, your mortgage, off their books within 30-60 days while the latter route could take six months to a year or more.

You do not need to find out if your lender is going to accept a short sale before you attempt to sell your house for less. You don't even need permission to list your house below what you owe. Once you get an offer, then you can proceed to negotiate the short sale of your loan. Your lender will then determine if the offer price is acceptable or not. All lenders will accept a short sale, however, not in every instance. It really depends on, above all things, the loan-to-value (LTV) of you mortgage. If your first mortgage represents a 50% LTV of your house, your lender will most likely not accept a short sale and they really have no incentive to. They have built-in protection with the large amount of equity in the property. Again, all lenders will accept a short sale given a high enough LTV it's just a matter of how much of a discount they will take.

Deed-In-Lieu of Foreclosure

A deed-in lieu of foreclosure is exactly like it sounds. It is simply you, the borrower, deeding the property back to the lender in lieu or instead of the property going to the foreclosure sale. The advantages for your lender are that it gives them immediate possession of the property saving them time and money. The main advantage to you is that it immediately releases you of ownership or responsibility of the property. It doesn't, however, release you of total financial responsibility of the entire loan amount. If you happen to owe more than the property is worth, your lender may still accept the deed-it-lieu knowing it is very costly to proceed with the foreclosure, but if the lender takes a loss, you may be responsible for the difference in the form of a 1099. Currently thanks to the Mortgage Debt Forgiveness Tax Relief Act in effect through 2009 you wouldn't be required to pay tax on the difference provided the property you are deeding back is your primary residence and the debt was used to acquire or improve your property. Be sure your lender waives their right to a deficiency judgment.

Reinstatement

If all else fails and you are determined to keep your home, full reinstatement may be the only option left. Although, in light of the new government sponsored loan modification program, you shouldn't have to go this route. The only reason you would want to reinstate is if you could afford the monthly payments and if you can do that, amongst other things, you should have no problem getting a loan modification.

If you do need to go the reinstatement route, contact your lender and request the reinstatement figures. If your home is currently in the foreclosure process, your lender will need to request the figures from the attorney. Be prepared to pay more than just the sum of the past due payments. The reinstatement figures will also include late fees, attorney's fees, accrued interest and other foreclosure related fees such as a BPO (broker's price opinion) and inspection costs if applicable.

When you request the figures, ask that they be made good for as long as possible and also to include a per diem amount, which your lender may or may not agree to include, should you go past the expiration date. The per diem is just the added costs per day should you go past the expiration date stated on the reinstatement figures.