3 Choices When Facing Foreclosure
April 22nd, 2008 Categories: Mortgage and Finance
The bad news is foreclosures are on the rise here in Wake County, just like they are in most of the country. The good news is the rate of increase is not nearly as bad here as in most other real estate markets.
Even though we are doing better than many areas with regards to increases in foreclosures, the sad part is that good people are still facing this problem right here in our local communities. If you are behind on your mortgage payments, and don’t think you have the ability to get current, you have three choices.
Let Your Home Go Into Foreclosure
This is not a good choice. Your credit can be ruined for 7 years. You will not be able to buy anything on credit for a very long time. You could end up still responsible to the bank for the costs of foreclosing on your home. Debt collectors will follow you wherever you go in their efforts to collect the outstanding balance.
By the way, the banks really do not want to foreclose on homes. It costs them a ton of money each time they do it. It’s a lose-lose proposition for homeowners and banks alike.
If you let your home go into foreclosure, it’s too late. No one can help you at that point.
Renegotiate Your Mortgage
Depending on the circumstances, you might be able to renegotiate the terms of your mortgage. The key thing to remember here is that banks really do not want your home. They are not in the real estate business. They are in the banking business.
If you want to stay in your home, this might be a good option. Most of the time it can be done with minimal damage to your credit. Much of this will depend on how many payments you miss before seeking help.
Ask for help early. I have experience with renegotiating mortgages and will be glad to try to help. Just give me a call, but please call as soon as you realize you’re in trouble.
Negotiate a Short Sale With the Bank
If there is no way you can afford to stay in the home, then a short sale may be a viable solution. This is where you find a buyer for your home and negotiate with the bank to settle for less that what is owed on the loan. If you are successful, the bank accepts the offer and your credit report shows several late payments followed by a satisfied in full remark.
If all goes well, you will walk away with your credit in far better shape than it would be as a result of foreclosure, and you will not owe the outstanding amount to the bank. I have experience with short sales too. Again, just call me and I’ll try to help. Just don’t wait too long. Call as soon as you realize there is a problem
Don’t be too proud to ask for help
I’ve had several past clients contact me recently to ask for advice for people they know who are at risk of losing their homes. More often than not I get these phone calls after many payments have been missed and the bank has hired a collection firm to start hassling the homeowner. I cannot over emphasize how important it is to reach out for help sooner, rather than later.
If you, or someone you know, is facing possible foreclosure, call me or email me as soon as possible. Foreclosure is the very worst choice, out of the three available to you, that you could possibly make. Anybody can get in a jam. Asking for help is always the best choice.
