Are you also in danger of going into foreclosure? If you answered yes then this article has been written with you in mind.
Let’s say for argument sake that the techniques mentioned in my previous articles did not work for you. That’s okay because not all solves will work in all situations. All just does not exist in nature.
Our current Economic downturn, which may have slid into cut in hours which equals a cut in your pay check, does not reflect on you nor should you beat yourself up over issues which most of the country are now and have been encountering.
If you tried loan modification and it did not work for you, keep in mind it is not going to help everyone. During the subprime lending many people thought their incomes over time would increase or they would be able to sell their property for far more than what they paid. So they took a chance on homeownership, buying a home which they would not have qualified for with normal conventional lending. When the loan reset the house payment was too much for them. Although before the bust, every financial analyst was predicting the bust, when would it happen no one knew; now we know and 20/20 hind sight isn’t helpful. So we have to look forward to the future house worth.
At this point assess your income. If your income cannot support your bills, it is past time to cut back. By the time most people are in the realization phase of an impending foreclosure they begin to take action. Canceling the fun stuff such as cable, internet, and home phone; also changes in grocery shopping habits opting for the generics or lesser priced items.
A cell phone may be the last thing to go. Especially since most people now use cell phones more often than landline.
But if you have exhausted all your resources it may be time to think of selling. Do not worry if your home is currently worth less than what you originally paid. It may be worth less but it is by no means worthless.
As for the new Bank of America plan to help home owners stay our of foreclosure, it will only help maybe forty-five thousand borrowers who hold mortgages with Bank of America. Right now the program is in the testing phase, which means issues will inevitably arise that may not be favorable o the homeowner.
The criteria for the Bank of America program:
· You will have to have a loan balance that is at least twenty percent more than the current value.
· Bank of America will temporarily forgive up to thirty percent of the balance owed.
· You will have to make payments on time for five years, and they may make one fifth of the reduction of the mortgage permanent each year.
The program will work for some but not for all, especially if you have lost your income.
For those not fitting into loan modification, then consider a short sale.
In a nutshell, a short sale is when you negotiate with the lender to sell your house for less than what you owe. This is done during a time when you are facing a foreclosure, and the housing market for your area is lower than the outstanding mortgage on your house. It is nothing to be ashamed of; many people are doing this. It is a step to keep you away from foreclosure and move you to a forward future.
Now is the time to take positive action steps in avoiding your foreclosure. When working with a Realtor or an investment company it is wise to ensure debt forgiveness is spelled out in the transaction. At Immaculate Enterprises, we believe this is a nonnegotiable item, requesting debt forgiveness is standard.
With the current government intervention most lenders are beginning to allow debt forgiveness more often.
No matter what options you learn about in the course of avoiding foreclosure, learning is nothing without doing. Take all necessary steps to stop the foreclosure on your property.
For help please call or email us no matter what your situation, whether upside down on your mortgage, equity without ability to pay, probate (no matter what stage), divorce, or ugly house syndrome we are here to offer you our help. Andrea A. Allen would like to let you know there are alternatives to foreclosure.