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Can a short payoff save you from foreclosure?

On Behalf of | Dec 4, 2014 | Foreclosure

Tennessee homeowners who are facing foreclosure may be desperate to find a solution. Not knowing how long they will be able to hold off foreclosure in order to provide a roof over the heads of their loved ones can lead to high levels of stress and anxiety. A homeowner recently shared the story of his long-lasting struggle to keep his home.

He struggled to maintain the high payments on a $160,000 mortgage that carried an interest rate of close to 8 percent. For four years he persistently fought to save his home. His repeated applications for a mortgage modification were met with the bank’s point blank refusal time and again. His house was in desperate need of repair, and this caused the value to drop below the outstanding mortgage amount. However, the bank would not even consider his requests for a reduction of the exorbitant interest rate or the lowering of the outstanding balance to reflect the current valuation of the property.

Over the years, the balance on the mortgage account grew to an amount exceeding $225,000. Out of the blue, the bank accepted an offer of a short payoff of $75,000. In addition, the lender offered to amend his credit record to enable him to obtain financing for the $75,000. So, his persistence paid off eventually, and he is now able to pay the affordable monthly payments.

Tennessee residents may want to consider retaining the services of an attorney who is experienced in the field of finances and property. Such a professional will guide them through every step of the way, starting with assistance in purchasing a home and obtaining a mortgage with an acceptable interest rate from a reputable institution. In addition, he or she will provide debt management advice that may even avoid any foreclosure issues in the future. However, an experienced foreclosure attorney will do whatever is legally possible to protect the interests of homeowners who are already facing foreclosure, including negotiating with lenders on their behalf.

Source: chillicothegazette.com, “Short payoff can be the ticket to mortgage success”, Daniel McGookey, Nov. 29, 2014


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