Don't Foreclose! You have options. So many people still panic when they find themselves unable to pay their mortgage. Contrary to what I often read, the owners I meet with are NOT trying to shirk their responsibilities. Quite the opposite! They are usually worried and embarrassed and confused. How did this happen, why did it happen and what do I do??
First things first: Do you want to keep your home? If the answer is "yes", then call your Lender immediately. Research your Loan Modification options. Unfortunately, this is often disappointing because unless you have already missed a mortgage payment or two, it's very difficult to get them to talk to you at all. Even then, you have to qualify for a reduced payment..pretty much the same ideas a qualifying for a Short Sale due to hardship.
If you do not qualify, or the terms they give you for the loan mod are unacceptable to you, then you may have to decide if you want to go ahead and start your research on a possible Short Sale.
- Talk to a Realtor experienced in Short Sales
- Short Sale Certification is not mandatory, but the course does help your Realtor understand the newest changes in Lender negotiations.
- Ask about the actual Short Sale process..both in general and in your particular case.
- Pricing depends on where you are in your delinquency with reegards to time frames, (NOD..Trustee Sale Date). Pricing also relates to your particular Lender and their Short Sale process.
- Be Prepared to provide your Agent with ALL the documents they may ask you for. Your Lender will NOT negotiate with us if you do not assist us in the initiation of your Short Sale..that is how it works.
- Most importantly of all BEFORE you agree to do your Short Sale, go talk to your CPA. Each one of us has a different tax situation. Be sure that you understand the potential tax consequences (and often times there are none in your case..).
Do not hide your heads in the sand. Face the possibility of losing your home. Pencil out the reality of what you are losing and what you may be saving yourself on a monthly basis. This is a business decision..remove your emotions and stick strictly to business.
Remember that it is not the end of the world to default on your home mortgage. Once your have made the decision as to how to handle it, the relief will be welcomed!
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