LET'S TALK FORECLOSURES

So I have had a couple of friends who have quietly admitted that the bank may foreclose on their homes. Now, this is happening in low priced homes all the way up to those over a million. Financial troubles these days are blind to socio-economic status or original home value. Not being able to make house payments or going bankrupt can happen to anyone. So let's talk about what you can do with your home. Unfortunately, I have gained some expertise and success in implementing options to losing your home.
Why not let your home go? Big one, other than the emotional toll, is that your credit will not recover for quite a while unless it can be documented that it was a hardship event like an illness or death.
So what else can you do? There are two good alternatives. The first is to TELL, don't ask, the lender that you want to re-negotiate your loan to a lower payment. They have to consider it and the process will take 3-6 months so in the meantime you can try to sell it unless they come up with a new rate that you can afford even if it is just for a year or two until you get back on your feet. If you have already missed payments, make this call!
If you have missed up to three payments, call and tell them you want to sell your home as a short sale and to send you the package. A short sale is where the current value plus seller closing costs is greater than the mortgage. In a short sale, you are asking the lender to swallow the difference, not you. So if it will cost $120,000 to sell your home and you owe $100,000, then they agree to absorb the difference. There is no real negative to you although they can file with the IRS so that you might have to pay taxes on the $20,000, but they are so busy that they rarely do that. This option will not negatively affect your credit especially if you get the bank not to report the late payments or short sale. It's worth a try.
When the bank sends you a foreclosure notice, you will have 3-4 months before they get proactive. It is important for you to get the home on the market ASAP at a price that will sell, and to call and ask for the loan re-negotiation so their clock stops ticking. That will give you time to sell for sure.
So what is the first step? Call me. I will have you get information from the lender or lenders and then we will do a realistic market analysis on your home. Then we can make a plan. Don't be embarrassed. It can happen to anyone. I can help and will support you every step of the way.