Don’t allow your house to go into foreclosure!

Many people are facing foreclosure these days, especially because of sub-prime mortgages and adjustable rates. Unfortunately, due to the market turn, many homeowners owe more than their house is presently worth. It’s terrifying and disheartening, and it’s very easy to feel like you should just throw your hands up in the air! You don’t know who to trust or what you can do, so you consider just staying until you get evicted.
DON’T do it! The worst thing you can do to your credit is to default on a mortgage! This is not even in the same category as other debts you may have, and the damage to your credit could cost you a lot of money over many years.
You have options. One option that many homeowners are taking advantage of is the short-sale. The basics of this transaction are that a homeowner who has missed some payments, and owes too much to realistically sell the home for enough to cover the mortgage balance, enlists the help of a realtor to negotiate with the bank. Banks are responsible to the Federal Reserve to make prudent decisions when granting mortgages. Therefore, it is bad for them to have to foreclose on a home. It also costs them a great deal of money to foreclose, evict homeowners, and then resell. All of this means that they want an opportunity to avoid foreclosure when possible.
Once you’re behind on payments, a realtor can negotiate with the bank so that they will consider settling for less than is owed on a home. This would never mean you’d get money in your pocket; however, you would get the golden opportunity of saving your credit and walking away with no further obligation. The realtor will market your house and present any offers to the contact at the bank. If the bank approves the offer, they will lower the balance on the mortgage so that you will be able to sell the house and not owe them any more money.
Challenges sometimes come along that seem like they are the end of the world, but they aren’t. By executing a short sale in time to stop foreclosure, you leave the door open for future opportunities. If you’re facing a struggle like this, contact me so that I can explain the details of your options.