If you are thinking about selling your home because your mortgage presents a problem, there are a number of things you should consider.
While the government has taken steps to help revitalize the housing market, that doesn’t mean that problems will disappear for every homeowner. But, you should consider the impact new legislation will have on your situation.
This $75 billion plan is aimed at shoring up the flagging housing market by helping up to 9 million homeowners rework their mortgages to avoid foreclosure.
The bill includes a program for more than 5 million homeowners to make their payments more affordable. It also involves an initiative to reach up to another 4 million homeowners by lowering the risk of imminent default with a "homeowner stability initiative" to reduce their monthly payments.
In addition, homeowners who remain in their properties and stay current will get a monthly balance reduction to reduce their loan principal. That will amount to up to $1,000 a year for five years. The bill totals nearly $100 billion.
In this day and age, it is important as ever to get advice from a real estate professional. If you are having problems meeting your mortgage obligations, you may think that foreclosure is your only option, but there are other alternatives:
- Short term options
- Repayment plans
- Change of terms
- Short Sale
In many situations, a Short Sale can be the best alternative to foreclosure. A Short Sale describes a situation where your lender agrees to accept less than the total amount of your outstanding mortgage from the proceeds of a sale.
Short sales are fairly complex transactions, there are a number of parties involved, and the short sale must be negotiated with your lender. Homeowners sometimes wonder if doing a short sale is worth the effort, and consider just letting their home go into foreclosure. However, from the standpoint of your credit rating over the long-term, a short sale will have less of a negative impact.
I have the knowledge and expertise to help you evaluate your options, and if a short sale is the answer, I can guide you through the process. Make the best decision for you and your family now and in the future - call me at 951-265-4305 or use the form below to send an email.
Janet