In the news, there is talk of a housing recovery. Experts
feel more optimistic about the state of housing industry in America. However,
if you or someone you know is one of the millions of homeowners who is stuck
with a home on which you owe more than the property is worth, the feeling of
helplessness can be overwhelming and frustrating.
Many people don’t realize that just because they are in
danger of losing their home to foreclosure doesn’t mean they have to wait
around for it to happen. With help, they can take matters into their own hands.
1. Reinstatement
Was the reason you missed your payments temporary and now the issue has been resolved? If you can make a one-time payment that includes all missed payments, legal fees and late fees, you are eligible to be reinstated back into your loan agreement.
2. Mortgage Modification
In some cases, you may be eligible to modify your loan in a way that reduces principle or lowers payments. Some of these programs vary from bank to bank, but there are also government-sponsored programs that are available to help homeowners in distress
3. Refinance
If you have enough equity in your home, refinancing may help you get back to more affordable payments. This will be determined by whether or not you are current on your loan, how much the property is worth and your credit.
4. Bankruptcy
In some cases, bankruptcy is an option. It may stop foreclosure and allow you to reorganize your debt. The stoppage is only temporary, however, and if you are still unable to make payments after the bankruptcy, the foreclosure will go through. It also makes a property much more difficult to sell.
5. Short Sale
You sell your property for less than it is worth and the bank, realizing that some money is better than no money at all, agrees to release you from your obligation to the remainder of the loan. In some cases, you are able to walk away from the loan clear of any obligation.
For more information regarding your options, contact me!
Rob Sales
Prudential Southeast Coastal Properties - Savannah, GA Associate Broker
Prudential Great Smokys Realty - Sylva, NC Broker
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