If you have feelings that you may be facing a foreclosure in Delaware, the time to act is now!
In most cases, foreclosure can be avoided. I see many situations where the homeowner is in denial of the situation and either does nothing proactive or waits until it is too late. Be smart - do the required paperwork and cooperate fully!
If you can't afford your mortgage payments due to job loss or whatever the case may be, you may have to sell your home and get out from under your debt. If that is the case and you need to sell, call Hud.gov and get in touch with a Delaware housing counselor. They can get you started with good advice and get you on track towards a resolution of some type. That's what they do! The key here is cooperate from the very beginning and do everything you're asked to do. It will take a little persistence and patience, but the alternative to NOT being proactive in this kind of situation is foreclosure. You don't want that and in most case you don't need to resort to that!
Depending on your situation it may be possible to even keep your home, but if you must sell and are facing a foreclosure in Delaware and owing more than your home is worth you will be dealing with a "short sale". A short sale is when a homeowner must sell, but owes more on the property than it is worth. This debt could be a mortgage balance exceeding the value or a combination of mortgage balance, taxes owed and selling costs. Most people do not have the cash to bring to a closing table to make up the difference so they have to sell "short". The lenders (lien holders) in these situations have to make a call as to what type of offer to take and how much of a hit they are willing to take. If there is a second mortgage it's more complicated and it can take some time, but in most cases it does get worked out and gets to the closing table. Depending on the lender, they may try and hold you to the debt, but mostly I've seen where the lender charges it off and lets the homeowner off the hook. While this is a relief you still have to be aware that your credit will suffer substantially for a while, but if you keep on top of your credit and do a good job building your financial integrity back up, you will get your credit back in good standing MUCH faster than if your home went to foreclosure! That's the big difference - how long will it take to restore your credit? In most cases it will be YEARS faster in the case of a short sale vs a foreclosure. Many people across the country are in this situation. Don't feel embarrassed, much of this is due to the financial markets - the subprime crisis and the bailouts!
After you do some work with a credit counselor, they will suggest that you hire a good Realtor®and get some good advice on how to get your home sold before it's foreclosed upon. It's important to get your home priced very competitively and even though you may not feel like it, take your Realtor's® advice on getting your property in it's best showing condition. Here's a link to some good information on selling in today's market and even if you're moving out of the area. Everyone in this situation NEEDS help, but not everyone ASKS for help. Don't make that mistake. Call a housing counselor and a Realtor® today if you're facing a foreclosure in Delaware!
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