Posts (RSS)Main | Foreclosure Hunting Basics »
Options for Distressed Homeowners
By sharon | April 16, 2008
Considering the problems in the housing, credit and subprime industry, it is not surprising that many homeowners are facing mortgage troubles. If you are among these unfortunate individuals, it is very important that you learn about the different options available and which among them would work best for your situation.
The first option that distressed homeowners like you should consider is talking with your lender. During these difficult times, you will be surprised to learn that lenders such as banks and other financial institutions are very much willing to work out mortgage debt payments. You would probably choose between loan modification and changes in your payment terms. Either way, you will be able to let your lender know how much you are eager to pay your mortgage balance and avoid a foreclosure.
Another option that homeowners can explore is selling their home. You can probably have an easier time selling your house if you work with a professional realtor or broker and have it listed. There are many buyers interested in buying distressed properties and you would certainly enjoy the fact that you will not have a foreclosure record on your credit history.
If for some reason, these options did not work out, you could always consider returning the property to your lender. In most cases, this is possible especially if there are no secondary liens attached to the property and you little or no equity left. Considered to be a friendly foreclosure, this option does not necessarily protect your from credit or deficiency judgment so make sure you think this through.
Worse comes to worst, you can always file for bankruptcy. You should understand, though, that this option will only work if you are really in a serious financial trouble. Also, a court would have to decide whether or not you are entitled for a bankruptcy. It is always recommended that you seek legal advice if you consider this option - or any other option for that matter.
Related Posts
Australian Lending Situation Has Parallels in United States
Is Project Lifeline Reaching Homeowners in Need?
Topics: Distressed Homeowners |
May 27th, 2008 at 2:48 pm
[...] section of this housing rescue package is still on the table. This portion deals with allowing distressed homeowners the ability to refinance using government backed [...]