If you owe more than your home is worth then it is a pretty good possibility that you've at least thought about walking away from your mortgage and letting the bank take the property back. Allowing your property to go into foreclosure however is rarely the right decision and one that can haunt you for a long time. There are many other options out there for you to avoid foreclosure and we'll go over some of them here.
I've divided the options into two sections, one for those who'd like to keep the property and one for those who just want out of the property.
Chapter 13 Bankruptcy Rules, Houston Bankruptcy Lawyer, Cost Of Bankruptcy,
IF YOU'D LIKE TO KEEP THE PROPERTY
1. DO NOTHING - Stay in your home or if it's an investment continue to rent it - if you have no need to move, like where you live, make money off of your investment property, or have a supply of cash to makeup for any monthly losses then you should be fine. You can ride the market out and eventually it will come back.
2. RENT - Become a landlord and rent your property. If you can meet the monthly mortgage payment or come close then this may be a way to keep the property and have someone else paying most or all of the mortgage for you.
3. REFINANCE - If you have equity in your home, have good credit, low debt-to-income ratios, and stable income you may be able to refinance your current loan. The lender will order an appraisal to verify the numbers before they refinance you though so make sure you have an accurate idea of how much equity you have in your home. A good real estate agent can perform a CMA, or Competitive Market Analysis, for you for free which should give you an idea of how much your property is currently worth.
4. MAKING HOMES AFFORDABLE REFINANCE OR LOAN MOD - This is government program and you'll need to see if you qualify for it. Call 888-995-HOPE for more information.
5. LOAN MODIFICATION - You may be able to qualify for a loan modification where the lender modifies the terms of the deal. If you do you may be able to get a better interest rate, lower monthly payments, or a longer term. In rare instances your lender may allow a principal reduction. Be wary of loan modification scam artists though and be sure to do your homework on any firm that you hire to do a loan modification for you.
6. FORBEARANCE - Your lender may be willing to give you time to makeup lost payments and get back on your feet. You'll need to contact your lender to see what they are willing to do.
IF YOU JUST WANT OUT OF THE PROPERTY
7. SELL IT - If you have equity you may be able to sell the property outright and pocket the difference after paying off the lienholders. Have a real estate agent "comp" the property for you so you have an idea of how much you may be able to sell the home for.
8. DEED-IN-LIEU - This is where your lender takes your property back "in lieu" of foreclosure. Unfortunately, lenders don't want your property and usually only accept a deed-in-lieu if it makes financial sense to them, i.e. there is equity in the property.
9. BANKRUPTCY - Seek the advice of a qualified bankruptcy attorney for more information.
10. SHORT SALE - In a short sale you sell your property for less than you owe and the bank approves the deal. Short sales are becoming much more common in today's market but be sure that you hire a qualified short sale agent to help you.
Those are the options available to you and the best thing to do is to learn all you can about these options and do what you feel is right for you in your situation. Be sure to talk to as many professionals as you can about all of your options. A good start would be to discuss your situation with a tax attorney, CPA, real estate attorney, credit restoration professional, and qualified real estate agent.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Denver Bankruptcy Attorney
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment