The Real Estate market has been declining for the last few years and has yet to reach bottom. Homeowners are having a hard time making mortgage payments or realizing that they owe more money than what their home is worth. Here are a few solutions:
A Loan Modification allows you to ‘work out' your loan. A Loan Modification is an adjustment to your existing loan by your lenders as a response to your long-term inability to pay your mortgage. Loan Modifications typically involve an adjustment of your interest rate, an extension to the length of the term of the loan, or a principal balance reduction all resulting in a Lower Monthly Mortgage Payment. You have to be able to prove that you can pay the ‘recast' loan (i.e. have employment).
Did you know that the results of a loan modification are different if you yourself call your lender versus a company who specializes in loan modifications? A professional loan modification negotiator can get better results when they do the negotiating with your lender. They know what to say, who to negotiate with, and know when they are getting the best results for you. Check the internet for companies who focus on this.
Loan Modification not the best solution for you? How about a short sale. The consensus is that short sales don't work or are more hassles than it is worth. Not true. Short sales benefit you by not having the lender foreclose on your home. After 3 years, you can repurchase another home. If your home is foreclosed, you have 7-10 years of wait time. Your credit score does get negatively impacted; however, there are companies who can help restore your credit during the 3 years. Now, short sales are not for everyone. Those who are at less risk of having issues are those who have a purchase money loan, property was primary residence, and there are no seconds or Home Equity Lines of Credit (HELOC). HELOC debt is not forgiven during a short sale and you could possibly still owe all or a portion of it. Check with a CPA or tax attorney before proceeding with a short sale. Every situation is different.
Having a hard time making your mortgage payment? Contact me to discuss your specific situation. I will be honest with you and let you know what the best solution is.
Comments(6)