Selling Your Home in Forbearance DFW

Is your Dallas-Fort Worth home loan in forebearance and your determining your options to find a way out? We can help!

First of all, you're not alone. Over 3.2 million households took advantage of the CARES act to suspend or "forebare" monthly mortgage payments due to the COVID-19 pandemic. Over 2.1 million of those loans are still in forebareance as of 4/1/2021. This purpose of this article is to show you solutions you can take to either get out of forebarence or start with a clean slate. Essentially there are 2 options current Dallas-Fort Worth homeowners in mortgage forebearance are presented with:

Selling Your Home While in Forebearance

Put Your Home on the market and find a Buyer

Home prices in DFW have skyrocketed in the past 12 months. Dallas- Fort Worth has reported some of the highest home appreciation statistics since the pandemic began. You may be surprised how much your home is worth now, and now is a perfect time to sell your home if you're currently in a mortgage forbearance. Many of our sellers are still walking away with cash from their home.

Sell Your Home & Begin with a Clean Slate

The biggest misconception with selling your home while in mortgage forbearance is the after-effects. As long as you are able to sell your home and repay the current loan principal as well as any principal and interest left unpaid during loan forbearance there will be no affect to your credit or credit worthiness. Example below:

Lucy & John are currently in loan forbearance and have a principal balance of $200,000 on their mortgage. Since entering mortgage forbearance they have accumulated $15,000 in forbearance principal and interest they must pay off. Lucy & John sell their home with OnDemand Realtors for $300,000. Because of their home equity they were able to pay off the outstanding $215,000 with their lender and are able to walk away with $85,000.

Finding Your Next Residence

People hoping to buy a new home after ending mortgage forbearance by selling their previous home will need to meet basic requirements for credit score, down payment, debt-to-income ratio, and ongoing income/employment. While credit isn't usually impacted because of using loan forbearance on a previous home, lenders now have much stricter guidelines. It is recommended you talk to a mortgage professional before attempting to purchase a new home.

3 Ways To Exit Loan Forebearance Without Selling

Full Repayment

Which is a one-time lump sum payment. It’s possible to pay back all the missed payments at once. But lenders are NOT allowed to require this.

Intermittent payments

Where you arrange repayment with your servicer over three, six, nine, or 12 months — whichever makes the most sense — on top of your regular payments

Lengthen Your Loan Term

Lengthen your loan term and pay off the missed amount at the end of the extended loan term, with additional mortgage payments

FAQ
How Does OnDemand Realtors help Homeowners in Forebarance?
We are not a mortgage company. If you are looking for assistance with your current home loan in forebearanace we highly suggest you reach out to your loan servicer. WHERE WE DO HELP, is current homeowners in loan forebearance who are looking for a way out of their current loan in forebearance by selling their home and using their equity to get them out of financial hardship -- meaning the fair market value of your home is greater than what you owe on your home loan—you can sell your house and use the profits to pay back your lender.

How does your process work? We start by evaluating the numbers to see first and foremost if we can help. If you have enough equity in your home to pay off the current home loan balance as well as any fees/interest/penalties incurred during your time in loan forebearance then our program is for you. We will then prepare you for the homeselling stage, which involves a selling consultation and ensures we are getting every dollar of equity out of your home. See here to learn more about how we assist our sellers. Lastly, closing day! You will recieve your funds the same day minus your current loan balance and any fees/interest/penalties.

How do i know if i have equity in my home? Simple! Enter your home address above to see an estimate of your homes value. If your homes value is greater than your principal loan balance then you have equity!

I just checked my home valuation and I have equity in my home! Whats next? We would love for you to call us at 214.766.5833 or enter your information in the 'Contact Us' box below to begin your evaluation. Evaluations can be conducted in person at our office or through a phone call and take about 10-15 minutes.

What do you charge? Our evaluations on your homes value as well as your personal forebearance situation are completely FREE. We charge the standard Realtor comissions to sell your home and not a penny more if you elect to work with us.

Is this something i can do myself? In this situation we really do recommend you hire a professional to assist you. We have 8+ years of working with lenders & title companies in short sales and foreclosures. The CARES ACT is new to everyone in the Real Estate industry, however we have quickly adapted our current programs to loan forebearances and have had great success.

What happens if I exit forebareance but am not current on my monthly mortgage?
Your credit could be adversely impacted if you choose to exit the forbearance without first bringing the account current. If you do not pursue assistance, any unpaid suspended payments could become past due, which may lead to mortgage default and possibly foreclosure.

What is the difference between a loan modification and a deferment?
A deferment moves the past due payments — plus any advances made on your behalf, like taxes — to the end of loan. While a loan modification changes the terms of your loan that might suit your new circumstances; those changes primarily will aim to reduce your original monthly payment amount.

______________________

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.