There are ways out. That' the #1 thing to know.
There are options available to homeowners who have missed mortgage payments & facing foreclosure.
Many homeowners do not realize that they could get out & save their credit too.
You have to know: The bank does NOT want your home. Especially not in the current buyer's market that most of the nation is in.
According to Freddie Mac the average cost for a bank to take back a property is $59,000! Why would a bank choose to lose so much? Wouldn't they rather work with you? Of course...
Typically, you can contact your lender & work something out. Thats the first place to start. Call them as soon as you know there may be a problem, don't wait until after you've missed more payments. Often times they will work out something with you to save you some time & money while times are tough. This may include an adjustment to your current loan or a grace period/forebearance.
If that doesn't work & you think you may risk losing your home, contact a real estate professional. Make sure you interview a few & find out what their experience with pre-foreclosures or short sales are. Some may have never dealt with this type of circumstance before.
You need to make sure you are honest with the agent so they can devise a plan for the sale of your home. Even if you owe more than the current market value, an educated agent can assist you in selling your house & saving your credit. Banks often times take a loss (also called a short-sale) on a property to avoid having to go through the expensive foreclosure proceeding.
Another option, if your credit is still intact, is to refinance. Again, contact a real estate professional for a referral to a mortgage broker or bank - or contact them directly if you know of someone. There may be a better loan available for you that will ease the monthly cost. Your current lender may even be willing to refinance you depending upon circumstances. Again, ASK. You don't know until you do.
The last option is to find a real estate investor who buys pre-foreclosures. Often times they have access to cash to remedy the situation quickly. Be advised though that they will be making a profit. That's expected but its something to keep in mind.
In conclusion, its pretty scary to be facing foreclosure on your home that you've worked so hard to purchase & maintain but keep in mind that there are many options available so be proactive as soon as you know there is a problem.
Don't give up until you explore all of your options.
Yours in Success,
Susan Milner
Florida Future Realty, Inc
http://www.YouTube.com/FloridaFuture
(239) 542-8521
Susan@SusanMilner.com
We also handle Cape Coral Short Sales......
copyright 2008-2012 Susan Milner of Florida Future Realty Inc
Bryant,
We KNOW that the next couple of years will be tough for some homeowners. Many of them got themselves into loans they did not understand & cannot afford. Unfortunately, as you mention, many do not know what can be done in these situations.
I know many 'investors' that want to capitalize on this but I'd rather see people retain any equity that they may have for themselves & hopefully not ruin their credit as well.
Homeowners fail to take proactive measures for a number of reasons. Many are too embarrassed or too afraid to ask for the help they need, while others believe the "hype" which is that lenders will bend over backwards to help resolve the delinquency, and then they wait and wait and wait for the help which may not arrive as promised while the foreclosure process methodically proceeds.
Irrespective of what mainstream media reports, reinstatement guidelines are very strict, and virtually unavailable to the homeowner whose financial hardship has not yet been resolved. The changes in bankruptcy laws (means test) in coincidental harmony with the mandatory increases in monthly credit card payment make continued homeownership a daunting challenge to tens of thousands of US homeowners.
Check our Blog: ForeclosureFocus