Do You Owe More On Your House Than it is Currently Worth?
This is not an uncommon predicament even though we are not seeing as many of these issues as we saw just 10 years ago. Many homeowners have found themselves in similar situations and it’s usually okay unless you have to sell or refinance. This is where this gets sticky. Understanding the market and when to sell may not even be a factor. If you need to relocate or move for some unforeseen reason, it may not matter what the market is doing nor how hot the buyers are out there. You simply cannot sell for what you owe on the house.
So, what do you do?
There are a couple of options you can take and understand them can be the key to getting exactly what you want. The first step would be to call a qualified agent that deals with a wide variety of home seller situations. Because I help foreclosures, short sales and typical sales, I can offer all the programs and options necessary to help you out.
First off, let’s get to the reason why you need to sell. Are you relocating because of a job? Death in the Family? Divorce? Job Loss? Medical Expenses? All of these are what the banks call “Hardships”. They are circumstances outside of your control that may be affected by your current financial situation. This may be the reason you are moving and if so, you need to sell. There’s really no other option. But, you don’t want to simply walk away from the home and let it fall into foreclosure so what can you do? This is where a short sale will come in handy.
A Short Sale is where you contact your lender and let them know the situation and they will agree to let you sell the property for less than what you owe, forgiving the debt in many cases. As long as you have a qualifying hardship, most lenders will allow this process. This makes it easy for you to sell the property and move on with your life rather than deal with a loss of money or credit report for years to come.
If you don’t actually need to sell the property but realize that the monthly payment is too much for your budget you can alter the payment by asking for a mortgage modification. This is where your lender will modify the existing mortgage either for a short time or permanently. Permanently usually means a refinance and modification will be temporary until you can get back on your feet or qualify for something more permanent. Both are great options but also may need to be facilitated by a qualified mediator such as a lawyer. These lenders certainly don’t make it easy when it comes to shuffling around mortgages for the borrower but it doesn’t mean it’s impossible. If you feel you are not getting anywhere or not getting anywhere fast with your lender, you might contact a qualified attorney to really get the ball rolling. Knowledge is power and there are so many laws in place that protect both sides, you need to have the right power working for you.
If you owe more than your home is worth but need to do something different, call me today and let’s discuss the options. You might be surprised at how easy it could be to get out from your financial burden. I’m here to help and have helped hundreds… let’s see what we can do.