Owner's Facing Foreclosure
For some homeowners, foreclosure may seem the easiest or even, only option. Interest-rate increases have driven monthly payments too high and properties cannot be sold for enough to pay off the loan, causing homeowners to feel so overwhelmed and helpless that many just walk away and let the lender have the property. Sadly, many Americans could escape foreclosure if they'd just talk to their lender.
So, what are some things you can do if you're facing foreclosure?
•· Contact your mortgage lender and let them know about your hardship. Explain that you are willing but unable to make your payments. Ask if a deferment or forbearance is an option they'd be willing to entertain? Do you need to sell your home? Find out if your lender will approve a short sale as an option.
•· Hundreds of dollars a month can be saved with tighter budgeting. Look for any way to cut expenses such as; Cut out entertainment, eating meals out, cable TV, reduce gas costs by planning errands more efficiently. As the weather gets colder, turn the thermostat down and wear a sweater.
•· Is their any way you can create income? Have a garage sale or sell items on Ebay.com, Amazon.com, or Craig's List.
Many of these steps may be painful now, but these short-term pains only last until conditions turn around - better than the long-term pain from losing a home, in which ruins your credit rating and possibly your job prospects.
Keep in mind; it is more work and expense for a lender to take your home. Lenders aren't in the business of owning homes. Foreclosure is an expensive, difficult process for the lender. When home prices are falling there's no guarantee the lender will sell the property for what they need to make up for the difference on the loan and the loss of time and money by going through the foreclosure process. Lenders are looking at short sales as a possible resolution.
My blog about "Buying a Short Sale" gives some insight about a buyer's perspective on short sales if you're interested. Keep in mind that there is hope for short sales now that a new light has been shed on them. My office has more extensive information on short sales through our website at www.YostHomes.com including a foreclosure/short sale comparison chart that shows the differences on how each impacts your credit in the future. This is definitely worth viewing if you are unable to continue making your payments. We have a frequently asked questions section. Follow this link for more information as well. Short Sale FAQ's
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