There are many people who are behind on their mortgage payments and feel that it is their personal failure. It is normal to feel bad when you cannot meet a financial obligation. What I am proposing is that you do not let these feeling paralyze you from taking the necessary action to put yourself and your family in a better position.
Homeowner's have many options available to them. Just because you are behind does not automatically mean you have to sell your home. Many lenders are more than willing to negotiate with you. It is not their goal to foreclose, especially in this market.
Some of your options may include:
Reinstatment - Brings the loan current by paying the total amount that is past due;
Repayment Plan - An agreement with the lender to bring the mortgage current over a specific period of time;
Loan Modification - Changes the terms of your loan including lower interest rate, lower payment, or extending the terms of your loan;
Deed In Lieu of Foreclosure - Surrender your home to the bank to avoid the expense of foreclosure for the lender and releases you from all liability assocaiated with the mortgage loan;
If the above options are not feasible then you may have no other choice but to short-sale the property to avoid a foreclosure on your credit.
Short-sales are when you sell your home for less than what you owe on the mortgage. The lender must agree to take a loss on the home, however, in this market lenders are accepting short-sales by the hundreds each day. There are specific criteria homeowners must meet to qualify for the short-sale, so please contact a Realtor who has experience with short-sales.
If you are working with a Realtor that is not giving you all of your options, then you need to find another Realtor.
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