We are here to help you save your home!

Workout: This term covers a variety of negotiated agreements you might arrange with your Lender to address a debt that you are having trouble paying. A workout is an alternative action to prevent a foreclosure for the mutual benefit of the Borrower, and the Lender. A workout may include a loan modification, a short sale, a deed-in-lieu, and various forms of forbearance. There may be several parties involved in a workout including the mortgage holder, a mortgage loan servicer, a foreclosure attorney, and possibly a mortgage insuror. If you are paying for private mortgage insurance, it's a good idea to keep them informed with respect to your attempted workout.

Forbearance: Sometimes, Lenders may be convinced that it is better for them to accept what you can afford to pay them (temporarily or long term) than it would be to foreclose on your home. A 'forbearance' is the (lender's)act of refraining from taking further legal action despite the fact a default has occured.

Financial Hardship: A Borrower's inability to make monthly payment in accordance to the terms of the mortgage note due to an involuntary reduction of income or an unavoidable increase of expenses. Most, if not all, mortgage loan servicers require documented proof of the existence of a financial hardship before they will consider granting relief measures.

Deed-in-Lieu (DIL): A DIL is an agreement to give the mortaged property to a lender as an alternative to foreclosure. If you simply can't afford to keep the property, you can offer the deed for the property to the Lender instead of foreclosure and agree that you would not contest/challenge a foreclosure, IF the Lender agrees to allow you to stay in the property without making payments for a set period of time (a few weeks, or 6 months to a year). If you give a DIL, be sure that you have a written agreement with the Lender stating that you are allowed to remain in the property rent free (or some agreed upon rent) for the agreed upon term. The advantage for the lender is the cost of acquisition is less than a foreclosure. The advantage to the borrower is they avoid foreclosure and potential deficiency judgment.

Deficiency: If proceeds from a forced sale (Sheriff's Sale/Trustee Sale)are insufficient to pay the entire debt, the Borrower may still owe the Lender because the home sold for less than the amount of the debt. In the case of a pre-foreclosure sale, if the Lender agrees to accept a amount less than they are due (short or compromised sale) and forgive the shortfall (difference between what was owed and proceeds from sale) the Seller may still face an exposure to an income tax liability.

Mortgage Capital, Inc. - 304 Cambridge Road, Suite 300 - Woburn, MA 01801
Office Phone: (781) 935-9355 Fax: (781) 935-9455 Toll Free Phone: (877) 66-CAPITAL

We are licensed in the following states: Licensed by the State of Massachusetts Broker #MB3849, Licensed by the New Hampshire Banking Dept. Broker #11061-MBR, Licensed by the State of Connecticut Broker #15657, and Licensed by the Maine Banking Dept. Broker #CSO7618 Licensed by the State of Vermont # 0689BM D/B/A JRL Mortgage Capital

We will Quote you a mortgage rate FREE with no obligation

NAMB - National Association of Mortgage Brokers