Foreclosure Can Be Avoided!!

If you don’t ignore other alternatives until it’s too late!
Please don’t make that huge mistake. Review, understand and consider all of your options as quickly as possible. The more time you give yourself before foreclosure on your home, the better your chances of being able to take advantage of one of the other alternatives.
So, what am I talking about regarding other alternatives?
1. Loan Workout. If you’ve been late on payments or are going to be late on an upcoming payment, contact your lender and discuss your situation. First, let your lender know about your employment situation, what you’re doing to resolve the issue, how much time you project it’s going to take for you to get back on your feet and that you’re committed to working with them. Ask your lender about temporarily reducing your payments so you can reduce your monthly financial overhead. Be creative!!
2. Loan Modification. This is more comprehensive assistance from the lender and can involve modification of your current interest rate, extending the loan to 40years and making other adjustments to the terms of your loan so that you can afford to keep your property.
3. Short Sale. When your lender agrees to take less than what is owed on the loan, it is called a Short Sale. Before you go down this road, be sure you talk to a tax adviser so you understand your potential tax liability, personal liability and any other financial consequences. Also, be sure you work with a Realtor so you can get a good idea of the current market value for your property. Once you have that information in place, price your property ahead of the market so it sells quickly and gets you out of this awkward position.
4. Refinance. If the above strategies don’t work, discuss refinancing with your lender or another lender. Also, be aware of the federal assistance that’s available through the Home Affordable Refinance program. There are certain conditions that apply to these programs!
5. Deed-in-Lieu of Foreclosure. This is a voluntary agreement between the lender and borrower where the borrower gives title to the lender in full satisfaction of the loan secured by the property.
6. Bankruptcy. This is a court proceeding where your debts are settled under the supervision of a judge. There are several different scenarios under Bankruptcy like Chapter 7 and Chapter 13 so again, talk with your tax adviser and have these scenarios explained to you and what your responsibilities are under each one.
None of these are pleasant or fun, but they are reality for millions of homeowners who are feeling the squeeze of a sagging economy, high unemployment and tight lending standards.
Be proactive! Problems don’t get better with time! Contact your lender and do your best to work with them! Nurture and maintain a positive attitude throughout the process!
Please share your thoughts by leaving a comment or call me at the office: 760-934-5088.
For information on Mammoth Lakes real estate, please log onto my real estate website at www.easternsierraproperties.com.