| I have been approached by a swarm of homeowners | | | | defeats the purpose. |
| who are currently facing foreclosure. It saddens me to | | | | Option 4 is to put the house on the market to sell at |
| see so many people in this situation, and how they | | | | current market value hire a Realtor to give you a free |
| have been deceived into thinking they can afford | | | | market data analysis if you list with them most likely |
| these homes. Even until now I hear stories about | | | | your home won't be worth what you bought it for, so |
| homeowners being promised false hope that they can | | | | its important that you maintain communication with your |
| be saved from foreclosure by paying a short sale fee, | | | | lender during this process, so they can at least see |
| loss mitigation fee, or just being striped totally of their | | | | that you are trying to get yourself out the hole, plus |
| equity by scrupulous professionals. | | | | they will pause foreclosing procedures during this time. |
| The fact of the matter is that you can save yourself | | | | Once the Realtor gives you the market value send a |
| from foreclosure; because you don't have many | | | | copy to your lender as they have to agree to take a |
| options. | | | | loss; this is called a short sale. During this time make |
| The first thing homeowners in trouble have to come to | | | | sure you save your money to start looking for |
| realization is to separate their emotional attachment to | | | | accommodations to move out don't get too |
| their home if they have owned it for less than four | | | | comfortable. It surprises me how many people wait til |
| years. I say that because if you bought your home | | | | the sheriff is knocking on their doors before they |
| within the last four years most likely you bought really | | | | reality actually hits home. |
| high priced and most of these homeowners bought | | | | If after a few months the property doesn't sell you |
| with a 100% financing with no income verification. If this | | | | have the right to claim Chapter 13 Bankruptcy. Just |
| is the case you must realize you have no equity and | | | | keep in mind that if you file chapter 13 its only |
| your house isn't worth keeping. What I recommend is a | | | | temporary, if you can't afford your current mortgage |
| family meeting putting together a budget; net Income | | | | chapter 13 won't help you as now you will have to pay |
| minus all expenses and if you're in a negative forget it! | | | | your regular mortgage payment and all of your debt |
| cut your loses and move on its not too late to start | | | | consolidated in another payment to the state trustee |
| over. | | | | so now you will have two payments. Notwithstanding |
| Refinance may be an option with the new FHA | | | | the enormous fees you will pay an attorney. Chapter |
| guidelines that go into affect October 1, 2008 this | | | | 13 is for individuals who can prove they will be able to |
| where homeowners that are behind on their mortgage | | | | pay their current mortgage plus all arrears in a |
| can refinance only if they can prove that their income | | | | payment plan over 5 years. |
| is sufficient to pay the mortgage at 29% of their | | | | If Chapter 13, Selling, Refinancing, short selling, |
| income, and only if their current lender agrees to take | | | | forbearance, payment plan, loan re-modification, don't |
| a loss (short Pay) on the current mortgage FHA will | | | | work out for you just give it up ask your lender if they |
| purchase the current mortgage up to 85% of current | | | | have cash for keys ask for a couple of months to |
| Fair market value with closing cost and debt all bagged | | | | move out and you will voluntarily give them the deed in |
| together not to exceed 90% of current fair market | | | | lieu of foreclosure, it's certainly less embarrassing than |
| value. You can visit their website at and search for the | | | | the sheriff forcing you and your family out. |
| HR 3221 housing bill for full description of bill. Please | | | | Just remember during these tough times we fail to |
| remember this is a full documentation loan it will not | | | | think straight and anyone who offers us a sign of hope |
| work for people who cannot prove their incomes! | | | | will look like a god; but reality is you can save your |
| After you realize you can't afford it and refinancing | | | | own home if you just talk to your lender and come to |
| couldn't help you call your lender don't be afraid bottom | | | | realization if you can truly afford to keep this home |
| line you can't afford it. your lender must see that you | | | | even if the lender works with you. |
| can't afford it so you have to lay the cards on table | | | | I can't stress to how important it is to communicate |
| with them period give them all the truth once they see | | | | with the lender, they will offer the options that they will |
| you can't afford it obviously a payment plan won't | | | | offer any body else you hire to do it for you. Don't fall |
| work. The lender may offer you loan re-modification if | | | | into a trap just tell your lender the exact truth be bold |
| your income proves that you can pay the new loan | | | | and un-embarrassed tough times could happen to any |
| terms so you see why I say sometimes its better to | | | | one of us and it's never too late to start over. Take it |
| come to reality and forget the emotional attachment | | | | from me I have walked the path and I have helped |
| we have for homes. Most lenders offer forbearance | | | | hundreds some I saved their homes and the others |
| which is deffer payments for up to six months but | | | | just gave them up gracefully and started a new |
| again if you still have the same income in six months it | | | | chapter in their life. |