Mortgage Worries-Whats Next
I have been getting more calls lately from homeowners who are headed for trouble with their home mortgage. Unfortunately until they are truly in trouble and missing payments there is little help that banks or the government programs are offering. I always recommend that the homeowner contact their lenders loss-mitigation department and ask for a mortgage modification. Unfortunately I am hearing more and more that banks and mortgage companies are unwilling to offer any help. I don’t understand this phenomenon, as mortgage holders are constantly saying they do not want to be in the real estate owned business, yet they seem to do all they can to make a workable solution impossible. There are some government programs that can help, visit their website for assistance.
I have heard some experts advise home owners to stop making mortgage payments to pressure lenders into working with you. That just is not right. Homeowners are put into a situation where they need to sell and try a short sale, after that fails they are going into foreclosure. Many homeowners are staying in the home as long as they can, and then simply walking away. Even if you are able to sell at short sale, your credit will still be adversely affected. More than likely your lender will report the debt as “settled”, which in bank talk means you settled the debt for less than you owed. In a short sale situation your credit will be affected for approximately 2 to 4 years, and 3 to 5 years in a foreclosure situation.
Why banks and lenders are not willing to work with homeowners before they are in trouble is beyond me, it is very frustrating in that the big banks that made these bad loans in the first place, are taking no responsibility, and doing nothing to assist home owners that are headed for trouble.
If you or a friend or family member are thinking of buying or selling a home, please feel free to contact me for assistance.
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