Johnson County Kansas Home Owners
Are you behind on your Mortgage? Read this blog to learn about your options.
Don't be foreclosed upon!
When a homeowner starts to fall behind on their mortgage payments they start to wonder what their options are? How many payments can I miss before the bank starts foreclosure? Will my bank work with me to catch up? Can I sell my house even if it is worth less than I owe the bank?
These are all great questions but unfortunately there is no one size fit's all answer. However there are always options if you are willing to explore them. The thing to remember is that banks are in the home loan business and not the home ownership business, they don't want to foreclose your home.
The first question you need to ask yourself is, Do I want to stay in my home? If the answer is yes then you need to consider these options
1. Loan Modification- Ask your bank to change your terms. If you have lost your job or have taken a new job with a lower salary the bank will consider changing your interest rate and (or) lowering your principal. The banks have been given incentives by the government to help make this a reality for you.
2. Refinance- Yes even if you are behind on payments you may be able to refinance to better terms. If you had an adjustable rate that has ballooned or had a teaser rate, or maybe a second mortgage you could refinance to a single fixed rate loan that will lower your monthly payments.
Now if you have decided that you don't want to stay in your home or if the above options will not work for you there are several options that you can pursue.
1. Foreclosure- You could allow the bank to foreclose. This should be your last option but since almost 50% of foreclosures happen without a single call to the bank I thought I would mention it first. Remember this should be your last option, not your first.
2. Deed in lieu of foreclosure- Better known as a voluntary foreclosure. Pretty simple, banks asks for a foreclosure and you agree. It saves the bank the trouble of going through the legal process to foreclose your home and your credit takes less of a ding than a foreclosure. This is a better option than foreclosure but is still not your best option.
3. Short Sale- This is where you sell your home. Since your home is most likely worth less than the loan you must request that the bank accept less, hence a Short Sale. Right now this is most likely your best option. Banks are willing to accept less because as mentioned above they don't want your home. Also according to Fannie Mae guidelines you are eligible to purchase a home again in only 2 years compared to a minimum of 4 years after a foreclosure.
If you are struggling with your mortgage and want to know you options call us, The Russell Home Team has the experience no matter what direction you choose. We can direct you to Certified work out counselors not the scam artist calling you and asking for $2000 to help modify your loan. We know how to sell your home via short sale.
You can call The Russell Home Team at 913-681-1383 or email us at info@RussellHomeTeam.com
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