Having Problems Making the Payment? Potential Solutions!

In the current economy, many Americans are losing their homes. It is Tragic! Here are a few ways that you can deal with this. It is not meant to be legal advice, just general information, see an attorney for legal advice.

1. Always talk to your lender if you are having a hard time keeping your payments current. It is better to have this discussion early than after things worsen.

2. Talk to your lender about refinancing your existing mortgage to a lower interest rate. For this, your house will need to appraise for at least what you owe on the mortgage. Find out what you owe on your home by going on line or by calling your lender. Ask a Realtor friend or ask me to do a shortened market analysis to compare your house to sold houses in your neighborhood.  If you owe more than the amount you could potentially sell it for, then this may not the solution for you.

3. Consider selling your home as a short sale. A short sale is when the lender agrees to accept less than you owe to close out your mortgage. They will require proof that, because of a hardship, you can no longer make your payments. You must put your house up for sale reducing the price as necessary and wait for an offer. The bank will deal with the short sale ONLY after you get an acceptable offer to purchase. This is a long and arduous process. Many Buyers can't or don't want wait the three to six months that it takes to get to closing. Selling your home as a Short Sale will hurt your credit rating but not as big a negative impact as a foreclosure. Some Short Sales are cause for a Deficiency Judgment where the lender places a personal judgment for the unpaid balance of the loan against the homeowner.

4. Foreclosure is a word we hear far too often. This is when you fail to make the payments on your mortgage and the bank legally takes the house from you. It is often a long process and causes a serious negative affect to your credit scores that stays on your credit for many years. It is a last resort. Before assuming that you will just get foreclosed, try to work out something with the bank. Always talk to your bank.

5. Maybe I can help. There may be a way we can work together to get your home sold quickly if that is what you want or if it is the last resort. You must call before you miss any payments! Call Michele Robinson at 410 515 7400. I have done this before and I am good at it.