Codman Square Housing Dev Corp

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Again make sure that your client continues to post his payments to the trust, to cover expenses not included in the reinstatement options. For example, a client is delinquent $2,700, and has incurred an additional $1,700 worth of foreclosure cost; only the $2,700 will be allowed in the retention options and your client will have to pay $1,700 up front. I would advise you always plan to file plans after your client has made their second payment, with the exception of clients that have scheduled foreclosure dates.

To qualify for this option, the loan must be in default. Your client must face a situation where he or she cannot continue to support the mortgage debt, and your client must occupy the home as a primary residence. Furthermore, the homeowner must not own any other properties subject to FHA financing.

It is advisable for a client facing this option to first consider the pre-foreclosure sale. By deeding the property over to the lender, your client loses all accrued equity in the home. Furthermore, should your client decide to select this option, he or she must complete the deed-in-lieu action within 6 months of the date of default unless an extension was granted by first trying other loss mitigation options or approval from the lender.

Should you have your client seek legal advice on filing bankruptcy? When facing a financial crisis, some clients will often look towards bankruptcy as an option to alleviate the problems. Before your client makes a decision to file a bankruptcy, determine how it will affect your client’s ability to keep the home. Bankruptcy often delays the foreclosure, but statistically bankruptcies that involve real property often fail.

A partial claim is a no-interest loan form the government that covers the amount necessary to reinstate a delinquent loan. Your client does not have to make payments for this note nor does the note become payable until your client either pays off the FHA loan or no longer owns the property.

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