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A Letter to the Homeowner

A mailbox belonging to a homeowner who hasn't paid their mortgage, receiving a letter offering help and guidance on available resources and steps to resolve the situation.

Hello Homeowner, 

I’m Freddie Avila, based in Northridge, California. I specialize in helping homeowners navigate through the challenges of foreclosure. Whether you’re just beginning to struggle or feel like you’ve reached a dead end, I’m here to provide guidance and support. Reach out to me if you have questions.  

“Managing Missed Mortgage Payments: A Comprehensive Guide” 

This letter aims to offer you a comprehensive roadmap to tackle missed mortgage payments and foreclosure. By following these steps diligently, you can empower yourself to make informed decisions and mitigate the impact on your financial well-being. 

Step 1: Contact Your Lender ASAP 

Open communication with your lender is crucial. Reach out as soon as possible to explore options like: 

Pause Payments: Temporary relief options such as payment suspension or forbearance. 

Loan Modification: Adjusting loan terms to make payments more manageable. Keep in mind that loan modifications do not pause the auction sale date, so clear and strong communication is vital during the process. 

Remember, there are free state, federal, and nonprofit organizations that can assist you with the loan modification process. These organizations can provide valuable guidance and support as you navigate through negotiations with your lender. 

Repayment Plans: Establishing a plan to catch up on missed payments gradually. 

– Assess your financial situation and provide detailed information. 

– Negotiate terms that fit your capabilities, like spreading missed payments over time. 

– Stay committed to the agreed-upon terms and make timely payments. 

– Monitor your progress regularly and communicate any difficulties promptly. 

– A repayment plan offers a structured approach to catch up on missed payments and avoid foreclosure, but it requires discipline and commitment. 


Step 2: Review Your Finances 

Assess your financial situation thoroughly to understand your income, expenses, and available resources. Consider: 

Trimming Expenses: Identify areas where you can reduce discretionary spending. 

Review your finances should involve a comprehensive assessment of your expenses. Start by scrutinizing recurring payments, such as subscriptions to streaming services like Netflix or monthly gym memberships. Identify areas where you can trim unnecessary costs to free up funds for mortgage payments. Additionally, consider more significant measures, such as returning leased vehicles, selling a second vehicle, boat, or RV sitting on your driveway. These actions can substantially reduce your financial obligations and provide immediate relief. By carefully evaluating your expenses and making strategic adjustments, you can better manage your finances during this challenging time. 

Leveraging Assets: Optimize Non-Essential Assets 

Examine your belongings closely and weigh the option of parting ways with those you seldom use, such as vehicles, boats, or RVs. Scrutinize leases and time shares that no longer align with your needs and reassess upcoming vacation plans. 

In addition, explore available resources to lighten financial burdens. Consider taking advantage of state-funded programs offering reduced payments, accessing food assistance initiatives, and opting for budget-friendly cell phone services, including prepaid options starting as low as $15.00 per month, with an average cost around $40.00, and without the constraints of a contract. 

Step 3: Gather Documents 

Organize essential paperwork to present a clear picture of your circumstances, including: 

– Mortgage Statements: Recent statements and payment records. 

– Proof of Income: Documentation of your income sources. 

– Lender Correspondence: Keep records of all communication with your lender. 

Step 4: Explore Assistance Programs 

Take advantage of available homeowner assistance programs, such as: 

State Resources: Explore programs tailored to your needs, like 

Local Assistance: Seek guidance from county-level agencies or organizations like 

– Federal Aid: Investigate options offered by HUD to prevent foreclosure and stabilize housing markets. 


Step 5: Considering Alternative Financial Solutions 

Explore innovative financial solutions like: 

Subject-to Mortgages: Transfer ownership to a buyer who takes over the existing mortgage. 

Wrap-around Mortgages: Combine existing and new loans for a single payment. 

Cash Offers: Evaluate offers from investors for immediate liquidity. 


Step 6: Seek Professional Advice 

Consult with experienced professionals, including: 

House Debt Relief Advisor: Receive personalized guidance from a foreclosure expert advisor. As an educator, I provide supplementary resources and alternative options to consider. 

Financial Advisors: Obtain strategic guidance for crafting a comprehensive financial plan. For specific financial advice, it’s advisable to seek assistance from a non-profit, state, or federal counselor. Engaging an expert may be beneficial if financially feasible. 


Here are your top options: 

Extending Foreclosure Period: Our first step is to extend the foreclosure period from 45 to 90 days (about 3 months). 

Reinstatement: Reinstatement involves paying the overdue amount and any related legal fees in a single lump sum to restore the financial agreement to its original status. 

Loan Modification: A loan modification involves renegotiating the terms of your mortgage with your lender to make the payments more manageable. Los Angeles County offers free loan modification services through Consumer & Business Affairs, providing assistance to borrowers in navigating the process. 

Subject to: One of several options available are: we can bring the mortgage current, take ownership of the house while you stay as a tenant, allow you to remain in the home, or possibly find another solution for you. 

Wrap-around Mortgage: Consider a wraparound mortgage as a solution: we bring your mortgage current, allowing you to stay in your home. With this arrangement, we take on the existing mortgage and provide a new loan, potentially with better terms. You can stay in your home and make payments under the new wraparound mortgage terms, or we can explore other solutions if needed. 

Equity Cash Sale: Consider a cash sale option for a fresh start with equity. By selling your property for cash, you can walk away with equity and the opportunity for a new beginning. This option allows you to settle your debts and start afresh without the burden of mortgage payments or foreclosure looming over you. With the cash from the sale, you can pursue new opportunities and regain financial stability. If you’re considering this route, consult with a trusted real estate professional to explore your options and ensure a smooth transition. 

Navigating these challenges is never easy, but I believe in transparency and honesty—values that guided me into this field. Having faced a similar situation in 2008 with Countrywide, I truly understand your concerns.

Quick Recap

First, organize your finances. Sell any unnecessary items, cancel unused subscriptions, use credit cards if necessary, and return leased vehicles if possible.

Next, ask yourself: Can I continue making these payments, or can I manage reduced payments? You might qualify for options like forbearance, loan modification, or seller financing.

If maintaining payments isn’t feasible, consider a cash offer and evaluate how much equity you can secure for a fresh start. I have access to extensive resources and will work diligently to find the best solution for your situation. Should you need my assistance, please contact your lender, and we will collaborate to advocate on your behalf.

(don’t forget, state and federal help is available), and I don’t charge you a cent to help you in any way. 

If you have any questions, need to stop an auction date, or want to explore your options, please don’t hesitate to reach out. I can assist whether you have equity or not. Sometimes homeowners can resume making payments but need help with past due amounts.

Warm regards,

Freddie Avila
House Debt Relief


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