Mortgage Release Program
Facing foreclosure on your home can be a frightening proposition. But there is a great alternative to foreclosure, and that is the Mortgage Release program. See how a Deed in Lieu can keep you from having to foreclose on your home.
If you are a homeowner who is not able to pay your mortgage, foreclosure may seem like the only option. But it’ is not. The Mortgage Release program offers you several ways to avoid foreclosure, and even make some money in the process. If you qualify, it may be just the mortgage solution for you.
If you are a homeowner who is having trouble meeting your monthly mortgage payments, you home may be in danger of foreclosure. Not only can this be a devastating emotional loss, but a foreclosure on your credit history can cause serious financial problems for years to come. Many homeowners are finding that there is an option that works for them: a Mortgage Release Program. (This program is also called a Deed in Lieu of Foreclosure.) If you qualify, this program will help you solve your mortgage problem, give you time to plan your move, and help avoid foreclosure.
What exactly is a Mortgage Release?
A Mortgage Release is a legal arrangement between the homeowner and the mortgage agency that is designed to avoid the foreclosure process. The homeowner will sign papers that say there is a voluntary transfer taking place, in which the mortgage agency receives full ownership of the property and the homeowner gets released from all of their mortgage obligations. In short, the owner will give the mortgage agency a deed in lieu of foreclosure.
The homeowner will have three options to choose from, when they are accepted into the program: (1) There can be an option in the program that will let the homeowner vacate the property immediately without involvement in the home sale. (2) The homeowner can stay in the home for as long as three months without paying rent. They will be able to use this transition time to save up money for their next living place. Or (3) the homeowner can choose the option of renting the home back for up to one year at a current fair market rates. This option is particularly attractive to families who may have special considerations such as waiting for school years to complete, or finding arrangements for a new daycare center so the parents do not need to interrupt their work schedules. Sometimes, a Mortgage Release may even often a package that includes a relocation incentive package that offers $3,000 for relocation to and will offset moving expenses and other costs.
Are there even more benefits to a Mortgage Release?
Yes. There are several important benefits for homeowners who want to utilize this program.
- Some people find the greatest benefit to be that Mortgage Releases are a purely private matter. Foreclosures, on the other hand, are a matter of public record and can be published in local newspapers. This can prove quite embarrassing for the homeowner, if it is seen by neighbors or business associates , and
- After a Mortgage Release the homeowner can get another mortgage loan in two years. If you have a house foreclosed on, you will need to wait seven-years for eligibility.
When entering the Mortgage Release program, homeowners do not need to get involved in a competitive real estate market. This includes several additional benefits such as, you do not need to find a real estate agent to work with, be involved in listing or showing the property, do not need to worry about whether a prospective buyer is qualified, real estate transactions, negotiate with a buyer and most importantly, deal with competing homes for sale in the same neighborhood. In short, the homeowner no longer has any responsibility to make sure the home sells or is involved with the home sale in any way.
When should I ask for a Mortgage Release?
A Mortgage Release can be very helpful in the right situation. You do give up all the rights to your home, which may present some troubling consequences. For instance, you will lose any equity that has been built up in your home since its purchase, as well as lose the value of any costly improvements you have made to the property.
Nevertheless there are times when a Mortgage Release is a great alternative.
Consider a Mortgage Release if:
- You are unable to sell your home, or do not want to.
- You are far behind on your mortgage payments, and don’s see this situation changing soon.
- You are not eligible to refinance your mortgage.
- You are suffering from a long-term hardship that is not likely to resolve itself soon.
- Your home is “underwater” and your mortgage is for more than it is worth.
- You want to leave your home but are not eligible for a “short” sale.
Foreclosures do not have to be the answer
A house foreclosure is near the top the list of events that cause stress in people’s lives. Officials wanted to help people who are struggling with their mortgages have a place to turn.
Do you qualify?
If you are thinking that you may want to participate in the Mortgage Release program, you will first need to find out if you qualify. Among the requirements are:
- The home needs to be in fairly good condition. It cannot have major structural problems.
- The home can be your primary residence, rented to tenants, a vacation home, or vacant.
- The borrow needs to be able to show a valid hardship. Some examples of hardships include: Illness or disability; death of wage owner; unemployment.)
- No hardship is required if you are over 90 days late on mortgage payments or your credit score is less than 620.
This is not a full list of qualifications. If you are interested in signing up for the program, be sure to investigate all the qualifications and how they relate to your own personal circumstances.
Some words of encouragement
Facing foreclosure on your home can be one of the hardest things you will ever have to face. There are programs out there, like the Mortgage Release program that can make this difficult process easier. If you are facing foreclosure, it is very likely due to events beyond your control.
Remember the encouraging words about perseverance as said by Mary Pickford, the great Toronto-born actress: “If you have made mistakes, even serious ones, there is always another chance for you. What we call failure is not the falling down, but the staying down.”