Friday, January 3, 2014

I cannot make my mortgage payments any more what can i do?

"I cannot make my mortgage payments anymore, what can I do?"

Okay so you are in a situation where you cant make mortgage payments any more and you have got to get rid of the house. Many people have this same problem every day and it is growing. It could be because of an illness, divorce, job transfer, job loss, unemployment, possible foreclosure or many other types of situations people face every day.

Now if the housing market in your area is not too good such as a soft housing market which many still are experiencing despite what the news and information available are suggesting on how prices are rising...but not for you. What would you do? How would you get rid of the house?

Yeah, you might be one of the lucky ones who could sell at a quick discount but most likely that is not an option for you. No equity? Upside down? Underwater? Yes there are a few options that are touted as the way to go. Lets examine some.

Short Sale. This is the most common option that you will hear from your local realtor or real estate agent. Your realtors experience is important here but they cannot guarantee they can get an approval. They are gonna sell the heck out this option because they want their commission if they can get it done that is. The condition of the home is also a factor. This is an option that will get the home to sell for less than whats owed. Sounds great huh? Well for starters this generally takes a long time and you may not have that kind of time if its and emergency. The lender must approve of the short sale for one and its not approved when you apply. The approval process as I said takes time and there is no guarantee that they will say yes. And If they happen to say No you will find out only at the very end of the 6 to 9 months (some a year or longer) process you have wasted your time. Oh, it also hurts your credit score just like a foreclosure no matter what your realtor tells you.

So lets say you can't get an approval for the short sale. There's always a Deed In Lieu option. Thats when you negotiate for the lender to take the deed. Now this also takes time and it too is Not guaranteed. Can't have a second lien or mortgage for one. Not gonna happen right away either and it must be approved. another time waster. They are going to want ALL of your financial information too just as in a short sale.
Almost always they will have you sign some promissory note to cover the loss of the difference after they sell the property too. Same as short sale.

Strategic Default. This is just when you leave the home and mortgage without regard to what happens. Bad move. They most certainly are going to go after you nowadays. Garnishing wages, bank accounts, liens on other properties, etc. Not to mention bad credit, can't get a new mortgage and tax consequences too.

Looking kind of bleak eh? Not really. There is another option. Mortgage Relief Solutions. They offer to take over your existing mortgage and home. You simply move on. There are specifics of course. If you want to know more read about them here:

by Eric Brown