Loan Workout Options
The options below apply to different situations and an experienced Loan Workout Specialist at Triad Guaranty will help you determine which best fits your situation. Not all options are available to all borrowers or all situations.
Retention Options
If your loan is in default and you want to keep your home then one of these options might be right for you.
- Forbearance Plan: A forbearance plan occurs when a lender agrees to suspend all or part of a monthly payment for a specified time period.
- Repayment Plan: A repayment plan is a plan to catch up on missed payments by paying more than one full payment per month until the account is brought current.
- Loan Modification: A loan modification is when the original terms of your promissory note are changed. A modification may include either: an adjustment to your interest rate; an extension of the term of your loan; a capitalization of the past due amount; or some combination of all of these.
Disposition Options
If your loan is in default and you are unable to keep the home then one of these options might be right for you.
- Sale of Property: The home may be sold prior to foreclosure sale and the proceeds used to pay off the delinquent loan. Occasionally the sale price is not quite enough to pay off all of the debt. In some cases, the sale may be approved anyway. This is what is referred to as a “Short Sale”. A short sale is when the net proceeds from the sale of the property are less than the payoff of your mortgage note.
- Deed-in-Lieu of Foreclosure: In some circumstances the lender may allow the borrower to transfer the property to the lender without going through the foreclosure process. This is usually a “last resort” option and may follow other options such as an attempt to sell the property.
All of these options have to be reviewed and analyzed carefully. Approval of these plans will require full cooperation and disclosure of financial information.
If Triad Guaranty insures your mortgage loan then we can help determine which option is best for you. We can also assist you in obtaining approval from your lender. Please contact a Loan Workout Specialist at Triad Guaranty for assistance with the entire process.
