This short work week has me totally goofed up. And I believe next week is one as well..at least for the schools. Maybe we should all go back to school and get more time off. Can you imagine having all that time off like we did back then..what would we do with all that free time?
So this housing market free fall has taken its toll on many and for a few different reasons. Lets start with the consumer that got some whacky loan program and knew about what they were getting in to (yes they do exist) or the consumer that did not know what they were getting in to as well. Then of course because of the economy there are those that have lost income/jobs and the most common is just the consumer that as a result has lost equity in their home.
Most likely all are experiencing the lost equity scenario but to what extent is the difference that will be forever in effect going forward. As a result foreclosures are at a high and many are at a loss of what to do. Some people just because they have lost equity in their home have stopped making payments and allowed their homes to go into foreclosure even though they can make the payments. This is one of things that is killing us for home values. So your house has lost value....welcome to the club but you can make the payments so do so please.
Lets focus on a few choices that can be made. Your first choice if you are trying to lower your payment is to refinance. For those that are upside down in equity they may be eligible for a refinance program designed for such loans. Any loan officer can check to see if they are eligible or not. If not another option is to contact the servicer of your loan and see what you can do about a modification. It can be a real pain to do this but it could easily be worth it. I did this myself and got a rate of 2% on my mortgage. If you attempt a modification you need to stay on top of the servicer and get things in timely. It took me over a year to get this done because they have so many attempting to do so.
You really want to avoid foreclosure and with the tightening of guidelines it is even harder to buy a home after one then it was a few years back. While it is not the best choice a short sale is a much better option. With a short sale you are negotiating with the lender to sell your home for $X in hopes that they will write off the rest. It is a complicated process but is the better option. While lenders are looking at this much like a foreclosure it is not as tough on your credit and in some cases you can buy a home sooner then with a foreclosure.
It goes without saying that you want to do what makes the most sense for you and that will vary based on a persons circumstances. The best thing to do though if you are in a mortgage bind is to talk to a loan officer and see if they have any suggestions. If they are good at what they do and are professional they can usually point you down the path that will benefit you the best.
Again....feel free to pass this along....ask me questions or give me comments as I really aim to try and make this blog a useful tool for all.
Go Pack!!!!!
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