If you owe more on your home than its value...Should you foreclose or Short-sale?

Mortgage and Lending

Foreclosure and Short-Sale were the two leading options for homeowners who owe more on their mortgage than the value of their homes. That should not be the case anymore as the government has recently revamped the alternative, Hope for Homeowners, to make it a viable option for homeowners who owe more on their house that their house is worth, instead of foreclosure or short-sale.

Affected homeowners are encouraged to take a second look at the Hope for Homeowner program if they are having problem making their mortgage payment. Lenders and investors are now seeing the need to participate because the program offers quick recapture of principal from their non-performimg residential mortgage portfolios and at the same time helping homeowners avoid foreclosure and minimize their losses.

Foreclosure or Short-Sale should be the absolute last resort when all else have failed. This is just one man's opinion and so let me know if you other ideas, suggestions or nightmares.



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John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Hans, the initial reaction to the Hope for Homeowners program was underwhelming, but the new changes should make it more attractive for both lenders and borrowers. It is a good alternative for homeowners who wish to stay in their homes and who can afford to do so.

Nov 29, 2008 04:28 AM #1
Jerry Becker
Jerry Becker and Associates - Littleton, CO
Littleton, Colorado

I would recommend any person it that situation to talk to an attorney.  It may be in their best interest to say in the home and file bankruptcy.  It's just something we can't comment on.

Nov 29, 2008 08:32 AM #2
Richard Sweum
1st Security Bank - Everett, WA

If you are offering any advice to a distressed homeowner other than referring them to a CPA and an Attorney...you very well could be functioning outside of "zone."  These are two affinity partners that every loan orinator needs to have.

Dec 02, 2008 07:09 AM #3
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Hans Iduma

Certified Mortgage Planning Specialist
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