Mortgage Delinquencies on the Rise – Avoid Foreclosure

If you are one of the thousands of mortgage borrowers who added to the record high delinquency in August, then you definitely want to take action now and choose to sell your home and avoid foreclosure and/or bankruptcy.

With unemployment on the rise, 7.6% of homeowners fell more than 30 days late on their mortgage payments in August 2009. Statistical data suggests that the current month over month rise in mortgage delinquencies is increasing. The numbers are staggering.

Many homeowners feel overwhelmed and simply do not know what to do. The natural tendency for many is to do nothing. No matter the circumstances hiding is not a viable solution. The longer a homeowner waits the worse the situation gets. Taking action early and understanding your options may likely prevent foreclosure or bankruptcy.

If the value of your home has declined and you now owe more on your loan than your home is worth, you may qualify for a loan modification.  If you can reduce the monthly payment on your loan and manage to keep your home then the natural choice is to call a professional who can help. 

I know of many homeowners who attempted to work directly with the banks on a loan modification and were denied because they “make too much money.”  This happens because homeowners believe if they do not show their actual monthly expenses on the loan modification application they stand a better chance of being approved.  This is not the case and is a compelling reason to consult with a professional.

The ultimate goal is to keep homeowners in their homes. The first step is to consult with a professional and begin the loan modification process. If a homeowner does not qualify for a loan modification then a homeowner would be well advised to consider a short sale.  It is far better to sell a home short than to allow the bank to foreclose. 

Kathleen Daniels Certified Short Sale Specialist

 Intero San Jose Ca

Number One in Silicon Valley

Copyright © 2009, All Rights Reserved by Kathleen Daniels *Mortgage Delinquencies on the Rise – Avoid Foreclosure*