I just got a call from somebody that is facing foreclosure. Their house is already listed on the MLS (45 days now).
Their rate skyrocketed (over double the cost of renting).
What should they do? I know that there are systems and processes to mitigate the damage.
- Should he stop payments immediately?
- Are there non-profits that he can call to guide him through this?
- He bought with 100% financing and a $20k seller subsidy! (not from me) and he would take a $40k loss if he sold right now (which he can't do, and I'm not sure a short sale has been approved)
- Show he file for bankruptcy?
- Just let it foreclose?
- How does he get the bank to agree to a short sale?
- Who can help him renegotiate a more manageable rate with the banks? (not refinance!)
Sorry if this was already answered, I'd love advice and links to other blogs.