So, the big question is, WHAT OPTIONS do you have, IF you can't make your payments and you will be going into foreclosure if something doesn't change?
A Short Sale may be the best option for you, but it is in your best interest to first read your options below and determine if there is a way to keep your home.
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1. Do Nothing – If you do nothing, you will most likely lose your home at a foreclosure auction. It'll affect your credit for 10 years and you will probably feel you should have looked at better options.
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2. Refinance – Completely paying off the entire loan amount plus any default amount and fees. Of course, this isn't really an option if you bought with no down payment and the value has dropped or if you bought using "Stated Income" and the income used wasn't really accurate.
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3. Loan Modification – Contacting your mortgage company to change the terms of the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.
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4. Bankruptcy – This option can eliminate debt and/or allow more time. The guidelines have gotten much stiffer on who is qualified to have their debt eliminated. Be sure to fully understand the process and it's consequences before declaring bankruptcy. This will affect your credit report for 10 years after the discharge date.
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5. Sell your home – If the property has equity you could normally put your house for sale through a Traditional Realtor and sell your home to a new family. Problem here, is there are so many distressed sales in the 2007 Real Estate Market locally, unless you are willing to take way less than you would in a normal market, your home will not sell.
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*********Final and Best Option****************
#6. Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by us, your Short Sale Expert if what is owed is MORE than the property's value. Since Debi Krichbaum has special training in the Short Sale transaction, your chances of getting on with your life after the sale are much better than using a traditional Realtor who has only sold homes in a normal real estate market.
