Patricia M. Tracey is the founder of Real Estate, Education and Community Housing (REACH), based in Palm Beach Gardens, Florida. Through her work at REACH, Patricia M. Tracey counsels Florida’s low and moderate income community members in working toward home ownership and avoiding foreclosure. To date, REACH has helped more than 500 families save their homes from foreclosure.
Several options are available to homeowners when they face possible foreclosure. These options include loan modifications, foreclosure bailout loans, or forbearance, which are tactics to adjust or delay mortgage payments to give homeowners a chance to right their payments and get back on track.
When these tactics don’t work, homeowners still have options to save their credit before foreclosure needs to happen. Short sales can happen when the homeowner is “upside down” on their mortgage, or owing more than the house is worth. Here, the lender takes over the sale of the home to their benefit. Bankruptcy may also be a better option for some, allowing time to create a plan to pay off debt, generally without accruing interest.
The above are only two of the options available to homeowners who are concerned about foreclosure. Foreclosure counselors, such as those at REACH, can help families to decipher the many options available to them and decide the best plan of action to prevent foreclosure.