A SIGN OF THE TIMES.
In today's many economic difficulties, on top of the list is the housing market. Even though billions of federal funds have been targeted at this important part of our failing economy. The fact is, families in this country are still faced with the grim realization that due to the other sectors of the economy failing, job loss, or just slow business in general has accelerated their demise. For many reasons Americans are still facing foreclosure.
Before you throw in the towel, know your options!
Many banks and mortgage holders have set up enormous loss mitigation departments, out of necessity. Many will now modify your loan to a more affordable payment to help families through this tough time. This service has now become very simple and streamlined.
In many cases of course you will have to prove your distress. A letter from you to your lender explaining your crisis, along with supportive material such as tax returns and recent paycheck stubs will also be required.
These modifications however are short term fixes to the problem usually the terms of this modification range from 3-7 years. But it will buy your family time to remedy your hardship. Many home owners try and do negotiate this modification themselves. And many others claim to be experts and will negotiate for you for a fee. My suggestions is you utilize a department of real estate approved negotiator. Many of these approved negotiators are also attorneys. This is your best choice to insure you get the best presentation of your hardship to your mortgage holder. Also remember, in California it is illegal to charge you for this service upfront unless you are DRE approved. Be aware of who you are dealing with!
If a loan modification will not work you need to consider a short sale of your property.
I am amazed at how many families ignore this procedure and just sit by and let the bank take their home. At the very least you should have a qualified agent conduct a short sale package for you. A short sale is asking the bank to accept a lesser amount than is owed on your home. Your agent will do a market analysis and show the bank that your home is now worth much less. Again with all the support materials your agent can convince the bank to accept your offer.
What does this do? Well, you will not receive any proceeds from a short sale. But if you let the bank foreclose on your home you are going to get nothing anyway. With the short sale you also get nothing. BUT, you will save part of your credit. On your future credit report it will show that note as satisfied. Still a hit on your credit but much less damaging and quicker to recover from.
If you cannot make your mortgage payments, contact your local real estate expert. Interview them and ask as many questions as you can. If they are qualified to do a good job for you they will be able to answer all your questions. Also ask how many short sales have they conducted and closed. Make sure they are licensed and registered with the department of real estate.
Do not just sit by and let foreclosure happen to you with out a fight!
Jerry Gusman is a foreclosure expert in southern California with Century 21 Excellence in Rancho Cucamonga for more information or help he can be reached through his website at www.thegusmangroup.com
No comments:
Post a Comment