|
Foreclosures - 5 Best Home Mortgage Remedies
Foreclosures! A term no one wants to become too familiar with. But, it problems beyond your control is causing you to drown in your home mortgage - there are ways of dealing with the situation....without totally losing everything!
First and foremost - Don't be in denial if you are in danger of foreclosure.
Educate yourself and learn about which options would best suit your needs before this forest fire burns out of control. How you choose to respond to the default will determine your financial status for years to come.
In my experience, a foreclosure is the worst possible scenario and detriment to your credit rating...even worse than a bankruptcy! So, please take steps right up front to preserve and protect your credit to the best of your ability.
Here are 5 ways to prevent the worst from happening:
1 - Contact your lender immediately! Let them know about your situation and try to work out a plan for getting back on track. They don't want foreclosures any more than you do...and many times will work with you to re-establish your mortgage. They might offer you interest only for a short period of time...or they might re-structure your mortgage by putting your past due payments on the back end of your loan to help bring you current...or they might waive late fees. Who knows? And it certainly doesn't hurt to try.
If you come to an agreement with your lender - be sure to get it in writing. And you will be wise to have an attorney review it before signing. But - be sure to live up to your part of the agreement.
One thing you can be sure of - avoiding your lender is the worst possible thing you can do. Make informed decisions now...before it's too late.
If you see that keeping your home is not an option - carefully consider your alternatives to foreclosure.
2 - Re-finance the loan. This may not be the answer if you're already to the default stage...but it's worth looking into. You will need to have some equity in your home in order to do this. But, in some instances, it could lower your payments and save your home in the process.
3 - Sell the home or consider a short sale. Consult with a real estate professional about the current market and what it will take to sell the house quickly. Remember, it's much better to break even and walk away from the house than to have a foreclosure on your record.
It you find yourself upside down on the mortgage - then consider a short sale. It's best to discuss this with a real estate professional and allow that person to negotiate on your behalf with the lender. In many situations, the lender will accept a short sale...again, because it saves them from going through the foreclosure process.
4 - Deed in Lieu of Foreclosure - This means that you relinquish your rights to the house and simply sign the deed over to the lender. Discuss this remedy with your lender because both of you will have to agree on it.
A deed in lieu of foreclosure is good for the lender because they don't have to wait until the proceedings are finished to sell the house. It will save them considerable expenses and court costs as well. And it can be good for you...because you won't have the foreclosure on your record.
5 - Chapter 13 Bankruptcy - This is usually a last resort...but it can be preferable over foreclosures. Bankruptcy will stop foreclosures...and it can prevent your being sued for a deficiency judgment. And if you re-establish credit - it may not be as harsh on your credit report as a foreclosure.
Accent Realty Group Pam Rumley
Exclusive Buyers Agent
Broker, CRS, ABR, SRES
Direct 615-428-8500
Fax 615-334-1083
pam@pamrumley.com
The agent to call when you need someone to go that extra mile!
|
|
