Do not forget the waiting periods when using foreclosure Alternatives

Many times, borrowers want to find foreclosure alternatives that are the least damaging to their credit. They may not stop to think about the tax liability they may be making. It is true, both a short sale and a deed in lieu of foreclosure can damage a homeowner’s credit. Many Texans do not know a foreclosure can stay on their credit report for seven years; it may make it hard to buy a house during this time.

Do not forget you, as a borrower, have foreclosure alternatives at your disposal. If you have not called a company that offers free foreclosure prevention services, you may not know your foreclosure alternatives. Experts at the Hope Hotline for Homeowners, 1-888-995-HOPE, can suggest a mortgage loan modification. This is not the only charitable organization that is willing to work with borrowers.


Mandatory waiting periods may limit a couple’s foreclosure alternatives in some cases

If it has not been that long ago, you, as a borrower sold your house in a short sale or opted to sell the house through a foreclosure auction. These actions may limit what you can do for a time. For example, Fannie Mae requires borrowers to wait at least two years before they can apply for a loan. Couples must have no more than an 80 percent maximum loan to value ratio. If it has been four years since a foreclosure sale or short sale, a couple is allowed to have a 90 percent loan to value ratio.

Should you apply for a FHA loan? It may be a great option for you as a borrower, if you can ask about loan modification before you must hold a short sale or sell your home at a foreclosure auction. Once the house sells at a foreclosure auction, getting a FHA loan can be a lengthy wait. Couples may have to wait three years to apply for a FHA loan. It is best if couples try not to limit their options. Explore foreclosure alternatives before opting for a short sale.

You do not have to be in foreclosure to use some foreclosure alternatives


Many borrowers think their home must be in foreclosure before they can apply for HARP or the House Affordable Refinance Program; they think they cannot apply unless the house is in foreclosure. You do not have to a single foreclosure notice before applying.

What are your options? You may want to apply for bankruptcy as a last resort and one of your last foreclosure alternatives. You may keep from losing your house, but bankruptcy can have devastating effects on your credit. Long-term, it may make it harder for you to bounce back and own a house in the future. If you want to find your best foreclosure alternatives, call Save My Texas Home. They offer free foreclosure prevention services and their specialists can offer advice tailored to your own specific situation. Help is only a telephone call away; learn how you can keep your Texas home by calling 512-271-5044 today! Visit us online at

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