Today, more Americans face forlosure than ever before. Newspaper headlines and the evening news report foreclosures at are the highest rate in 30 years. High interest rate loans, increased unemployment rates and expansive consumer debt are contributing factors to this financial phenomenon that is wreaking havoc on our economy.
Forlosure is a stressful process for all parties concerned. The homeowner is fearful of losing their home and the lenders are stressed about how foreclosures will affect their bottom line. With millions of homeowners defaulting on their mortgage loans, many lenders are facing financial ruin.
There's no doubt that forlosure is a mounting problem in the United States. However, there are steps that can be taken to either save the home from falling into foreclosure or sell the home and avoid ruining the homeowner's credit.
If you are currently facing forlosure, the first thing you will want to do is contact your lender. Generally, the lender will work with you if you are proactive in the matter. If the financial challenge that caused you to fall behind on your mortgage has been resolved, the lender might be willing to offer a modified agreement. This type of arrangement rolls two or three payments to the end of the mortgage note and provides you with a little time to financially recover from the setback.
If you have fallen behind because of employment or health issues, you may qualify for a Forbearance Agreement. With this type of arrangement, the lender temporarily reduces or stops your loan payments. Negotiating a Forbearance agreement with a lender can be somewhat intimidating due to the complexities of the matter. If you are uncomfortable negotiating with your lender, contact your local U.S. Department of Housing and Urban Development agency. HUD provides free counseling through approved housing counseling agencies.
Another option to avoid forlosure is to borrow money from family or friends. Oftentimes, people are too embarrassed to ask relatives for help. No one likes to admit they are struggling financially. However, if you allow your pride to get in the way, it could end up costing you your home. More often than not, family and friends will assist you. It's a good idea to draft a promissory note and outline repayment details so all parties understand the arrangement.
Staying in your home may not be an option. If you are unable to obtain the financial means to bring your loan current, you might not have any other choice than to let it go. However, this does not mean you have to allow it to fall into forlosure.
Some lenders will allow homeowners the opportunity to sell their home and accept a short sale. A short sale means the lender accepts an amount less than what is owed. For instance, if you owe $100,000, but only receive an offer for $90,000 the lender might accept the offer and write-off the $10,000 difference. Or, they may work out a payment arrangement for you to pay the $10,000 over a period of time.
If you are unable to locate a buyer, another option is to sell your home to a real estate investor such as Simon Volkov. We have a broad network of investors who purchase all types of property across the U.S.
In today's world, credit is everything. Forlosure can have a devastating effect on your credit rating and can haunt you for ten years or more. Even if you are unable to save your home, there are multiple options available to save your credit.
If you are facing forlosure and are interested in selling your property, we'd like to help. There is no charge to speak to Simon Volkov regarding your situation. To arrange your free consultation fill out the Pre-foreclosure Form.
Published on October 22, 2007 at 09:21 PM