Prices have dropped 50% since 2006 in some markets and many homeowners are left with mortgages double the value of their homes and payments that have risen recently due to Adjustable Rate Mortgage products. If you find yourself in this situation you may feel like there is no hope. Here are a few options: 1. Loan Modification, 2. Deed In Lieu of Foreclosure, and 3. Short Sale. So many homeowners have resorted to letting their homes go in foreclosure without looking into these other options. You may be able to work out a loan modification with your bank using the governments “Making Home Affordable Program.” Your payment or interest may be reduced temporarily however you may have to wait months to years to get a response and approval rates are low. You could also give back the property to bank under a Died in Lieu of Foreclosure. The last option that may be right if you find yourself with a home you cannot keep is to do a short sale. With a short sale you can stay in your home until it sells, have fewer credit implications then a foreclosure, and may be eligible to receive relocation assistance from the bank at closing.
Making the first step to deal with this problem is hard, but once you take the first step in the right direction you will be on your way to a brighter financial future.
For a confidential Real Estate analysis please call me today at 805-310-5164. – Ray Vega
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