Using the Power of the Internet, to Help Our Customers

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This page is still under construction.

How to Avoid Foreclosure

Pay the Delinquency. Under most circumstances, Cherokee will accept payment of the full delinquency (the "bring current amount") and reinstate the loan. The delinquency may include certain legal costs if you are already in foreclosure. We require certified funds for reinstatement.

Forbearance / Repayment Schedule. The most common way of resolving a loan default is to work out a plan which will let you repay part of the delinquency each month, along with your regular monthly installment. If you are temporarily unable to meet your monthly mortgage obligation, Cherokee may extend forbearance by agreeing to suspend payments or accept partial payments for a limited period of time until you will be able to begin a repayment schedule. We are not required to extend forbearance or to agree to a specific repayment schedule; however, we will usually cooperate if you can show the ability to resume payments on a specific date in the near future. A written Forbearance Agreement is required.

Payment Assistance. Many State and local governments, as well as private charitable organizations, have programs which will pay all or part of your mortgage obligation for a fixed period of time.

Reamortization. If your loan is reamortized, the delinquency is added to the loan balance in order to bring your payments up to date. This increases your loan amount and will also increase your monthly payments. The amount of the payment increase will not be as great if the life of your loan is extended at the same time. Cherokee will consider such arrangements, but we are not obligated to do so.

Sell the Property. If you do not believe you will be able to reinstate your loan and cure the default, a private sale of the property will enable you to meet your obligations and realize any equity you may have accumulated. Most private sales would enable you to pay your loan in full. You may sell the property to a buyer who obtains his or her own financing, and pays off the Cherokee loan.

If your property cannot be sold for an amount which is equal to or greater than the amount owed, Cherokee may accept a "short sale" for the difference in order to help you go through with the sale. Compromise sales are approved if the sales contract meets several criteria and results in a savings Cherokee over the costs of foreclosure. If a "Short Sale" contract is accepted, you may be released from all further liability, or you may, in some instances, be asked to repay Cherokee, over time, for the loss.

In order to be considered for a "Short Sale", you must submit a signed contract equal to fair market value. Any contract should state the words "pending Cherokee approval of a Short Sale." All closing costs should be reasonable and customary. You should submit this contract along with the the appropriate forms to Cherokee.

Deed In Lieu of Foreclosure. If you are unable to cure the default, and a private sale does not appear realistic, Cherokee will consider accepting a "Deed In Lieu of Foreclosure". If there are no liens on the property, and Cherokee agrees to accept a Deed In Lieu, you will have to sign legal papers transferring ownership to Cherokee. If a Deed In Lieu is accepted, you may be released from all further liability, or you may be asked to agree to repay Cherokee for all or part of the deficiency. Please note that Cherokee has the option of reporting "voluntary foreclosure" on your credit report versus "foreclosure." We cannot guarantee how future creditors will view this information.

Glossary of Terms
To see a Glossary of Terms often used in the real estate and real estate financing industry, please click here.

Avoid Late Fees - Pay Online
As a service to our customers, Cherokee now accepts electronic payments.  Using the PayPal system, you may send money to us from any credit card, or your PayPal account.  For more information and to make a payment, please click here.

Download Credit Release Forms + More
You can instantly download and print many of the forms necessary to work with Cherokee by going to our "Download Forms" web page.  Please click here.

If you require immediate assistance, please contact us by telephone at (732) 741-2000.

Resources from HUD
The web page resources that follow are not "Cherokee" information.  In an effort to provide the most current and impartial information possible, we offer these "off site" links to pages on the official web site of the United States Department of Housing & Urban Development ("HUD").

How to Avoid Foreclosure
This link will take you off the Cherokee Financial web site (in a new browser window), to a page on the web site of the United States Department of Housing & Urban Development ("HUD").  By clicking this link, a new browser window should open.

HUD-Approved Housing Counselors

This link will take you off the Cherokee Financial web site (in a new browser window), to a page on the web site of the United States Department of Housing & Urban Development ("HUD")

The page you will be taken to is a listing of HUD-approved housing counseling agencies. HUD funds housing counseling agencies throughout the country who can give you advice on, among other things, avoiding foreclosures.

Homeowners with problems that could result in default of their mortgage or foreclosure on their property are urged to contact a HUD-approved housing counseling agency immediately.

Broken Links?

We make every effort to maintain links to the most useful and relavent web pages.  However we can not, and do not, make any representation as to the accuracy or reliability of any information contained on "off site" links.  By viewing this web site, you are agreeing to be bound by our Terms of Use.

If you discover that any of the links on this web site are "broken", please let us know.

Thank you for your interest, and for visiting this web site.