Are You Underwater? What Can You Do?
Are You Underwater? What Can You Do?
Are you a homeowner that currently owes more on your home than it's worth? What can you do? What are your options? Believe it or not you have a few.
If your current mortgage is not affordable, there is an organization called the Neighborhood Assistance Corporation of America or NACA, that can help you work with your lender to try to find a more affordable modification of your home loan. NACA is a HUD approved housing counselor and they have a contract with over 80 of the largest lenders in the nation. This contract commits these lenders to consider any modification proposal that NACA assists you in creating. One stipulation is that NACA must be able to document that your current home loan payment is not affordable. If you have contacted your lender in the past and have been unsuccessful in modifying your home loan to an affordable payment, whether you've been declined or approved for a payment that's simply not affordable you will want to talk with NACA.
It just so happens that NACA has a Save The Dream Tour that is coming to San Diego February 2-6 at the San Diego Convention Center. I have personally been involved with Nokia and have volunteered during there tour stops here in San Diego and Los Angeles. I have seen firsthand the amazing results that NACA can produce. The real key to NACA's power is the contract and the resulting commitment that they receive from the lender to work with them to find an affordable solution for the borrower. If you or someone you know, is having a hard time affording their mortgage payment please let them know about NACA. For more information about NACA and their Save The Dream Tour that's coming to San Diego the first week of February, you can visit NACA.com or you can contact me directly at 760-802-9500.
Another step you can take or option that you have if you're underwater on your mortgage is to sell your house for less than what's owed on it which is known as a short sale. A short sale is something that's actually encouraged by lenders today because it is in their best interest financially to let a home sell by short sale rather than foreclosing on it. Believe it or not lenders actually net more money as a result of a short sale than they do taking it back and having to sell on their own. If you or someone you know would like to sell your home please call me today at 760-802-9500 or you can visit littonrealtygroup.com.
As you can see from the video below which is an appearance I made on News Eight at 6 AM in November of last year, I mentioned that two of the options available to homeowners that are underwater or owe more on their home than it's worth was NACA or short sale.
There are more options available to you, like bankruptcy, deed in lieu of foreclosure and of course foreclosure any of these options require that you consult an attorney as does the short sale option. We also recommend that you consult your tax professional regarding the potential tax ramifications of short sale, bankruptcy, deed in lieu of foreclosure and foreclosure.
As always, thanks for listening.
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