Struggling to Make Your House Payment? Already Behind? What's Next?

So I asked a few questions in the title that likely somewhere between 10% and 20% of you can identify with. In fact, according to certain studies, it is estimated that approximately 16% of homeowners will fall behind on their payments in 2009. That's a huge number, especially considering how many homes have already been lost to foreclosure.

So, if you, a friend, or neighbor are in this camp, don't feel alone. Sadly, it is a very common occurance these days. In fact, my dad and I get quite a few calls and emails from friends and clients considering selling their home, and well less than 50% of them actually end up listing their homes because they are unable or unwilling to take a loss. Now, there are all different aspects to this that we could discuss, but I want to focus on the options today. What are YOUR options if you are late on your mortgage or about to be? Well, we always advise that you consult an attorney and tax professional before making your final decision (call us for some of the area's best attorneys and tax professionals), but here are your basic options:

1.) Loan Modification/ Restructuring: So, you don't have an insatiable need to sell. In fact, you still like your home, and maybe it's the home you raised your kids on, and you just can't part with it if at all possible. Well, then this option may be a very good one for you. If this is the case, we will take a closer look at this option in the coming days, but if you can't wait for that, call us today to discuss at (928) 237-1908.

2.) Short Sale: So, you have come to grips with the fact you can't afford your payment any longer, and you don't have a particular need or want to stay in your home. Then, this option may be a good one for you. Short Sales can be a very long process, and frustrating, but in the end can save pretty big in the credit realm. Currently, most undwriting standards will let someone with a short sale on their record be eligible to purchase another home within 2-3 years! Not bad!

3.) Foreclosure: You have totally committed to getting rid of your home, and absolutely don't want to hassle with attempting a short sale. Well, before you commit to letting your home get foreclosed on, you may want to consider another option: "Deed In-Lieu of Foreclosure". In this scenario, you will typically contact your mortgage company, and ask them if they are open to doing a "Deed-In-Lieu". Now, we always advise you conslult an attorney and tax professional for any of these options, but what a deed in-lieu does is allow you to get back into the buying game a little quicker than if your home goes to foreclosure.

Now, depending on many factors, you may not know which is your best option. If that describes you, then definitely give us a call ASAP to get additional input about these options. (928) 237-1908. We are here to help. Next time, we will take a closer look at loan modifications. Tune in soon for more.............