NHF Has two primary programs to help you: our Loan Modification/Extension Service and 'Short Sale Package Service'.  This is how they work:

Workouts/Loan Modifications/Extension Service

If you are a homeowner who can either raise 50% of the amount you are currently delinquent on your payments, or you can make a reasonable payment but do not have the 50% down, we can most likely help you get current and stop your foreclosure.

Many banks are experiencing overwhelming delinquencies, foreclosures and serious default problems on their home loans. The volume of REO’s (Real Estate Owned) on their books is increasing at alarming rates. About 1 out of every 200 home owners are in foreclosure right now and this number is expected to increase this year. The big problem for the banks with the REO is that the Federal Reserve forces them to reserve up to 8 dollars for every dollar tied up as a REO. In practical terms this means for every Million Dollars they have on their books in REO’s, the bank cannot lend $8 Million Dollars. This problem is causing serious problems and major shortages of available money for new loans.  The problem also has opened an exceptional opportunity to help homeowners stop foreclosure.  Property values have dropped as much as 40% in some areas of the country so banks cannot easily sell their foreclosed homes and realtors cannot find retail buyers, everyone is looking for a discount so banks will often negotiate.

Workouts:  This is where NHF negotiates with the bank to take less than the amount owed to get your loan brought current.  NHF has been able to negotiate with banks exceptional deals for homeowners that have some cash available. The banks standard response to a default homeowner is “All or Nothingâ€� when it comes to past due amounts. If a homeowner has 50% of the past due amount available, in most cases NHF can get the foreclosure stopped and get you 'back on track'  for less than what you owe.  Your monthly payment will still be the same amount, but the loan will be reinstated and the foreclosure stopped.

Benefits to the homeowner:

• stop the foreclosure
• keep your same payment
• avoid paying all that you owe in back payments
• keep living in the home

Loan Modification/Extension:  If you can make a reasonable payment on your loan, but you do not have a large sum of cash readily available, NHF may be able to do a 'loan modification/extension' with you.  This is where we negotiate with your bank to take the amount that is past due on your account and add it to the back of the loan; sometimes the banks will also negotiate a lower payment and or extend the term.  (For example, if you have 25 years left on a 30 year note, they may extend the payment the extra 5 years.)

Benefits to the homeowner:

• stop the foreclosure
• keep your same payment or get a lower payment
• avoid paying all that you owe in back payments now by having them added to the back end of the loan
• keep living in the home

Short Sale Package Service

If you are a homeowner facing foreclosure, you cannot sell your house because you owe more than it is worth, this may be the service you need.  NHF will negotiate with your bank to allow the property to be sold for less than you owe on it, which is called a 'short sale.'  This will stop the foreclosure by selling the property for less than what you owe on it.  This is what happens:

Step 1: Purchase Agreement: National Homeowners Financial agrees to buy the house with a ‘short sale’ loan reduction offer.  This is a signed real estate purchase agreement executed as soon as you are ready.  (Note: If you are an investor, we can use your purchase agreement and represent you.)

Step 2: Negotiate with the Bank: We collect and submit all required paperwork to the bank (44 pages on average) then negotiate the loan reduction with them.  This is called a ‘short sale’ agreement, and is a legal process common in the banking industry.

Step 3: Property Sold: While negotiating with the bank we market the property in partnership with your real estate agent.  Once the bank accepts our offer, the property sells for a new lower bank-approved price.

If you are living in the property you can continue to live there as a house-sitter at no additional monthly rent until the property is finally disposed, which can range from 45 days to 6 months depending on your state. 

Does this affect my credit?

Yes, but not like a foreclosure.  Most banks will report that the loan was paid for ‘less than originally owed.’   You may be able to declare insolvency (different than bankruptcy) and eliminate some of the financial impact.