Are You in Trouble with Your Mortgage?
There are many options available to you if you are
getting behind in your mortgage payments. None of these
options are pleasant. However, the longer you wait to
deal with the situation, the options available to you become
much less pleasant. Keep in mind that the bank does
not want your house. The bank just wants the money. It is a
real pain in the neck for a bank/lender to foreclose, to put
the house up for sheriff sale, to pay the property taxes,
then if the house does not sell at sheriff sale, they have
to list it for sale with a REO agency and try to sell it on
the open market. And to top it off, they have to take
legal action to have you evicted. All of this takes a lot of
time, effort and money. The bank would just as soon deal
with you and help you get back on track if at all possible.
The very first thing you do is to contact your mortgage
company (bank/lender). The bank/lender is the only one that
can help you at this point. Go to them with a plan on how
you can catch up and keep up your payments. If the situation
that caused the problem has been resolved (e.g. temporary
unemployment, unforeseen medical bills, etc), then the
bank/lender will in all likelihood enter into a forbearance
agreement with you to put your outstanding payments on the
back end of your mortgage and you will be able to start
making regular mortgage payments again.
The next option, if you have any equity is to sell your
house and move. By selling your home now before you get too
far behind will preserve some of your equity and your credit
thus allowing you to start all over. It is important to list
your home for sale with a professional who will list
your house to sell quickly, not sit on the market. The
longer it sits on the market unsold, the less money you will
walk away with in the end. For example: If your mortgage
payment is $2,000 a month, you lose $2,000 + penalties for
every month your house is unsold. Therefore, it is important
that you inform your Realtor of your situation so that they
price the house to move quickly, thereby saving you money in
the long run. Just as an aside. This is not the time to try
to sell the home yourself (For Sale By Owner). Every day you
waste is money you will never recover. Plus if a buyer knows
you are in trouble they will offer even less to take
advantage of the situation. FSBO buyers are bargain hunters
and at this stage you are too vulnerable to risk it. A
professional will get your house sold and get you more money
in the end.
The third option, when you do not have any equity, is to ask
the bank to take less money than you owe; A Short Sale.
Many people do not think they can sell using a professional
because they cannot afford to pay commission. We can
negotiate a short sale with your lender. Banks will pay the
commission if you allow us to do the negotiating for you. It
is important to the banks to deal with a licensed individual
who can legitimately market your property and get a price
based on market value. Just be aware, that there are NO
SHORT SALE EXPERTS, regardless of what you read or are told.
Every circumstance is different, every bank is different. No
one knows for certain what they bank will allow.
The final option is foreclosure. This is the worst thing you
can let happen and should be avoided at all costs. The
consequences of foreclosure and eviction are too numerous to
list here.
Only you can determine the best options for you. If your
most viable option is to sell your house, it is important to
hire a professional to do so as quickly as possible. As was
previously stated, this is no time for amateurs, new agents
or to try for a For Sale By Owner. You will need a seasoned
professional to market your home and help you achieve the
best outcome possible. Keep in mind, time is your enemy if
you are in trouble with your mortgage. Don’t waste one more
day, contact us for a Free, No Obligation Assessment and
let’s see what we can do to help you by completing the form
below or using our contact information listed at the top of
this page. Read Our Personal
Experience with the "experts".
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