How Do I Avoid Foreclosure In This Economy
With so many homeowners unemployed and their home values daily loosing value, foreclosure is often the only option that comes to mind. This short article will try to answer a few questions, provide a few solutions and give some needed positive support. The most important thing for anyone struggling with the possibility of losing their house is to not panic or worry. If you are married it is important that you lead your family with hope. This means that you keep your spouse informed. You must be compassionate and responsive to her concerns by sharing the situation and your hope. Parents should not forget that their children can have a lot of fear and concern about their future. The most important thing to concentrate on is not your home, but your family.
Going though foreclosure is tough, but not impossible nor all that difficult. If you are going through a foreclosure you now know why the experts suggest 6 months of cash cushion. Ya, that 6 months of cushion could come in handy. If you’re still working and just wondering about foreclosure this is your hint. A cash cushion is just as important as your insurance policies.
Once foreclosure has became the concern or a certainty there are few things that can help you, and they can save a bit of your credit. The first possibility is to request a “deed in lieu of foreclosure”. This basically will allow you to give your home back to the lender. However, you will likely end up paying the difference between what the house sells for and your mortgage value. So, once you’re out of the mortgage you will likely have a small debt, but your credit will look a bit better.
The final option is for a short sale. I have personally been through this process. The most important part of the action is to find a knowledgeable real estate agent who is very familiar with the short sale process and has completed a number of them: successfully. A short sale, is basically the sale of your home at an agreed upon price with a buyer and the lender. The difference in the home sale price and your mortgage value because of recent legislation is not treated as income not expected by the lender to be reimbursed; A short sale is, for my opinion, the best way to go. Do some research?
I would like to toss something else in. If you are going through a foreclosure or are in default and end up getting a job. Use your situation to renegotiate with your lender a new value on your home. I say this because I truly believe that most lenders were negligent when allowing home prices to rise so sharply in the early half of the 21century. The excuse that they were just trying to keep competitive with Fannie Mae or Freddie Mac won’t cut it. If you end up doing this send me an e-mail and tell me your story.
On last thing do not regardless of your political party affiliation count on Obama to bail you out: he won’t. I have come to a hard realization that the goal of the Obama Administration is to reduce the wealth of the American populous. This being said I personally believe that the economic recovery will only come after all of the bloated mortgage market is foreclosed upon. I anticipate about 3 to 4 years before the economy gets better unless Socialization occurs. Take care of your families and your neighbors.
Hey Can anyone recommend a good loan modification lawyer? Or do you think I should try this myself. If so, can you recommend a good training kit so I will know what not to do?
Thanks!