Time is against you and I’m sure you know that. That’s why your on the intent looking at your options and getting educated on what the best thing it is to do. I just caution you to be very careful on what route you decide to take.
The direction you decide to go will determine what you can and can’t do in the future in regards to your credit. As with your mortgage and any other extension of credit, that is how you are judged at face value. It’s a number on a computer or piece of paper that determines if we can rent an apartment, get a job, business credit etc.
Almost everything you do involves your credit.
Your main goal in this is to save your home but don’t forget that trying to salvage your credit should be right up there. If you fail at avoiding foreclosure then your credit is going to be damaged for years to come. Whatever you do, don’t let it get that far.
If you want to save your home and if your qualify, then a loan workout (loan modification) will be your best bet.
If that fails then your should immediately place your home for sale at fair market value. If it cost more to sell then it’s worth and with all the fess etc., then you will need to negotiate a short sale with your lender. You’ll end up with nothing but you’ll save your credit. You can also file Chapter 13 Bankruptcy to avoid foreclosure. (I am not an attorney nor is this legal advice) You may also be the victim of predatory lending and file a lawsuit. You can also file a deed in lieu which is the last ditch effort to sign off the property and relinquish your rights to the lender.
You have options. They are not all that great but it’s better then not having them. Most all of this you can do for free or with the aid of a non-profit organization or for profit foreclosure prevention services.
Be careful with who you deal with and stay strong. You’ll need all the strength you can get to make it through this. Just remember that there is help and other people going through this very same thing. So your definitely not alone.
{ 6 comments… read them below or add one }
Hi Moe,
I think this website is great!
Could you please advertise to people that there foreclosure counselors who will do this work with them for FREE. We are all HUD approved and not allowed to charge. They can call 800 569-4287, put in their zip code and get the closest agency.
While everyone can do it on their own, it is best to speak to someone – like you, Moe, or my agency – because there are reasons why the lenders do not offer modifications and we can help homeowners present a good case.
You are doing a great thing! I’m overloaded with calls, it is getting bad out there! You’re help is wonderful and I hope you add the HUD agencies to your list of advice.
Feel free to email me for more info!
Thanks so much Stephanie!
I actually mention HUD non profit agencies a lot in my blog. Just not every post
But I do plan to have a section just for non-profits to help people and get the word out. I am redesigning this site to make it information packed!
My goal is to get the word out that there is help and great agencies like HUD have certified housing counseling agencies that have special training and offer free services.
I would love if you can do some guest posts and let us know more about what’s going on and what HUD is doing to help people avoid foreclosure.
Hope to hear more form you!
Best Regards,
Moe
Hi Moe,
I would love to help out!
Can you publish as a post the recent plan for New Yorkers? Governor Spitzer has teamed with SONYMA to refinance New Yorkers in ARM’s! Here is a link to the press release – http://www.ny.gov/governor/press/0727071.html – there are restrictions but it should give some New Yorkers relief!
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If you want out from under your mortgage and the lender is not communicating with you on a modification, why can’t you just deed them the property ( not a deed in lieu). Just fill out a warranty or quit claim, go to the courthouse and record it and mail the lender a copy.
They now own the property with their own loan on it.
How can they foreclose on property they own?