You Owe More on Your Orange County, CA Home than It’s Worth & You Don’t Know What to Do –  Options 1 and 2 – Reinstatement & Forbearance

This is a series for people who are “upside” down in their homes and looking to learn about their options.  For the introduction see You Owe More on Your Orange County, CA Home than It’s Worth & You Don’t Know What to Do .

Many people don’t realize that when you owe more on your Orange County, CA home than it’s worth and you don’t know what to do, when you are having trouble making your payments and are facing a potential foreclosure, that there are several things you might be able to do. This series will discuss the many different options so that you are informed if you are facing this situation.

Option 1 – Reinstatement

Reinstatement means that you pay the loan current including all past due amounts, charges and fees to bring your mortgage completely current.

Pros: 

• No longer facing the threat of foreclosure.
• Loan will be completely up to date. 
• Credit begins to get better over time now that the mortgage company is no longer reporting lates.

Cons:

• Most people facing foreclosure don’t have this amount of money readily available.

This option may be good for people who receive a large bonus, are paid on commission and have a large one come in or are able to get a gift or loan from family and friends.

Option 2 – Forbearance

Forbearance occurs when the borrower obtains a payment plan with the bank to bring the loan current over a certain period of time, while the borrower gets back on their feet.  This may include making some of the past due payments due at the end of the loan period but often means paying back the entire amount over several months.

Pros:

• Suspends foreclosure proceeding while payments are made timely.
• Allows borrower time to catch up.
• Brings account up to date during specified period.

Cons:

• It may be difficult for someone already having difficulty making payments to pay additional amounts to catch up.

This may be good for people who are expecting a change for the better in their finances or had a temporary setback in their income.

We know what your options are when you owe more on your home than it’s worth and don’t know what to do, and we will share it with you over the next few weeks.

If you want to make sure not to miss any of this series, please subscribe to this blog to learn your options.

If you have questions in the meantime, please contact Christine Donovan at 714-319-9751 or e-mail Me!

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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Do you owe more on your Orange County home than it’s worth, and you don’t know what to do? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.

Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

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Copyright © 2009 by Christine Donovan, All Rights Reserved. You Owe More On Your Orange County, CA Home than It’s Worth, and You Don’t Know What to Do – Options 1 and 2 – Reinstatement and Forbearance.