Being in over your head financially is a huge burden. The stress of knowing that you can't make ends meet can take a toll on your body and mind. Many people are facing mortgage debt that is greater than what their house is currently worth and they think because of this situation they are forced to lose their home, thereby damaging their credit and self esteem.
The message that needs to be brought to these people is that there are OPTIONS. You are not in this situation alone, there are thousands of people facing this decision who are just like you. Because of the encompassing nature of this problem, the lenders are trying to work with the homeowners to find alternatives to foreclosure. I am working with sellers in Westfield, MA and the surrounding areas to help them through this difficult time.
What are the Options For Homeowners Facing Foreclosure?
1. Try to “make nice” with your lender. You can call your lender and ask them to reinstate the loan. You may be allowed to reinstate or make the loan current by paying a lump sum or making scheduled payments to your lender over a given amount of time. Just explain to them you had a few bad months and things are now better and most lenders will try to work something out with you.
2. IF you have equity, refinance. Usually the lender would refinance the existing loan and include as part of the new loan any late payments, and fees that you would need to regain control. It would all be "wrapped" into one mortgage.
3. Assuming you have no equity and have to sell, you can list your home with a Realtor who has been trained how to do short sales. Almost always your best option.
4. You can give the property back to the lender. If there are no other liens on the title, the lender may agree to take the property back. This process of transferring ownership from you to the lender under these circumstances is called a Deed in Lieu of Foreclosure, and is sometimes referred to as a "friendly foreclosure" because in essence that what it is. You just walk away. You must discuss this with your lender.
5. You can file bankruptcy. First, you need to seek the advice of a attorney. In no way are we trying to provide legal advice. Only an attorney can give legal advice. The two most common "chapters" of bankruptcy are Chapter 7 and Chapter 13.
Bankruptcies are "work out" others are "wipe out". Chapter 7 is the "wipe out" and Chapter 13 is the "work out". Bankruptcy is a federal court action designed to help individuals repay their debts or eliminate their debts depending on their circumstances. Chapter 13 bankruptcies are designed to reorganize debts in an effort to repay all debt. Chapter 7 bankruptcies are geared more towards liquidation of assets. Both Chapter 7 and Chapter 13 immediately stop the foreclosure process and any creditors from taking further action against you.
To read the rest of my E-book, "Should I Short Sale My Home?", please visit my website.
If you are in this situation and need help, please do not hesitate to call. I am experienced in short sales and have a team of professionals in place to get you through this difficult time.
Contact Lesley Lambert, The Real Estate Natural at Park Square Realty, Westfield, MA at 413-575-3611 for a FREE consultation.
Comments(4)