If you have fallen behind on your mortgage, you will begin to receive information - lots of not so subtle suggestions and advertisements - many from individuals or companies whose primary interest is to make money from your temporary misfortune. They will tell you that time is your enemy and that you must act immediately to save your credit. Don't do it! The very best thing you can do is CALL YOUR LENDER. Now more than ever before, lenders are willing to discuss all options available and short selling your property may be one of many that you should consider. Below are some of the current options that may be available, depending on your personal situation:
Sell the property at fair market value and put any equity you may have in the property in your hands - where it belongs. Remember, every individual situation is unique and we can at the very least explain what your personal options are.
If you owe more than your home is currently worth, you can look at negotiating a discounted payoff with your lender or loan servicer. We can negotiate with your lender, with you involved throughout the process, for you to become eligible for a Short Sale. There is some negotiation involved and you do want to make sure those you are working with are negotiating in your best interest for a fair settlement of the sale of your home and final dissolution of your mortgage loan. The costs associated with the short sale process are most often paid for by the lender, including title and escrow fees, commissions and some repairs.
Refinance the property and pay off existing loans. HUFF Realty Mortgage can assist in the discussion of refinance options including the new Home Affordability Refinance Program that allows homeowners to refinance up to 105% of the current value of their home.
Negotiate a Forbearance Agreement with your mortgage company. For those borrowers who experienced a very temporary event that caused them to fall behind on their mortgage, a Forbearance Agreement with the lender is a good option. In most cases, the mortgage company is going to look for two things when considering a forbearance agreement. First, why the loan became delinquent in the first place. It helps greatly if the problem was something beyond the control of the borrower - serious illness or injury, temporary disability or a one-time disruption in income. Second, that the borrower's financial difficulties have been or can be corrected. The mortgage company wants to know the borrower is now on solid footing and can be counted upon to make regular loan payments as agreed. The new payment will most likely include some amount to go to the delinquent amount.
Of course, you could just do nothing. Many go this route because the situation seems overwhelming. It is a heavy burden, but the consequences of a foreclosure are serious. The best recommendation we can provide is to call your lender and if you are interested in discussing this with a real estate professional with experience dealing with these types of situations, please give HUFF Realty a call.