There really isn't an easy answer to this question as each person's circumstances are different. The first question to ask is why you can't afford your home anymore. Is it because of an adjustable rate that has reset, economic hardships like the loss of a job or did you bite off more then you can chew and buy a house that was really out of your price range.
If you are having hardships due to a rate reset, then run to the phone and call your mortgage company the second you are done reading this posting. The more a mortgage company is able to assist you depends on how pre-emptive you are in dealing with the problem. Many mortgage companies will work with you and lower their rate. Now don't expect this to be a "Hi, I am having problems paying my mortgage. Will you lower my rate?" type of conversation. You basically will have to re-apply for the loan. They will ask you for financial information including your salary and your monthly expenses. They will then decide what they will lower the loan rate to based on this information. It is a lengthy and complicated process, but it could be the difference of you keeping your home and not keeping it.
If you are having difficulities due to economic hardships or purchasing a house out of your price range then you still need to contact your lender. In these cases the best option is for you to sell your home. A bank foreclosing on you is NEVER a good option. A foreclosure will stay on your credit report for 7 years. This will effect future big ticket purchases where you need credit, your credit cards and even your job. Employers look at some peoples credit report on a regular basis. A foreclosure can be grounds of immediate reassignment or termination. If you are in this position then you NEED to sell your home. Even if you owe more then the home is worth, together we can work with the lender. Believe it or not, but it is not in the best interest of the lender to foreclose on your home either. It costs them a lot of money to foreclose on a property and a short sale is normally their best option as well. A short sale is where a bank forgives the amount of debt that is the difference of the loan amount and market value of the property. If a bank knows that you are working with a real estate agent and actively trying to sell the home then they will slow down the foreclosure process. Remember that this isn't out of the kindness of their hearts, but because financially the best case scenario for them as well.
Please feel free to give me a call at 302-478-6425 or email me at Billiechubb@gmail.com to discuss your situation further. I am experienced and deal with banks on a daily basis. Together we will work through it and figure out the best options for you.
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Billie Chubb
Chubb Realty Group
302-478-6425
"Born Here, Raised Here, Top Realtor Here."
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