We've been hearing a lot about foreclosures and short sales lately. A foreclosure takes place when the owner of a property stops making mortgage payments, and a bank or lending institution takes legal action to take ownership of the property. Those properties are frequently sold by the lender to recover a portion of the original investment. A short sale is when a lender allows a property to be sold for less than what is owed on the mortgage.
Both instances can devastate a homeowner's future and lenders' bottom lines, and both should be avoided if at all possible. Realtors can help walk buyers (and sellers) through the process on either side of the transactions. Before you let a foreclosure proceeding take your home, try to negotiate with your lender. Before you lose your property, communicate with the lender and possibly negotiate a short sale.
If you are capable of making lower payments, there is help for you and you may be able to keep your home. Right now, the cards are stacked in your favor if you are a homeowner facing foreclosure or a short sale. To receive the serious attention of your lender, you should be an owner occupant. Investor owners might not receive the same consideration.
If you are strapped with an excessively high interest rate, one that has escalated from an affordable rate to an unreasonable or unaffordable rate, you must get to your lender and plead your case for a lower rate or longer terms. Either way, you're looking for a lower payment.
In my opinion, you are the victim if you qualified for the loan at the teaser rate and then suffered when the rates adjusted upward. If I were in your shoes, I would make it my top priority to correct this injustice.
This is my suggestion: Call and speak with your former loan officer or equivalent person in the lending institution that holds your mortgage. Move up to the top supervisor if you don't make progress. Keep a good record in your calendar of who you spoke to and what help is offered. Keep moving up to the highest person with whom you can speak. Follow your conversation with a certified letter.
If you receive no encouragement or help, then it is time to talk to your elected representatives. Your local, state, and federal government representatives should be ready to listen and offer suggestions for help. Helping homeowners to keep their homes . . . isn't this what part of the "bailout" monies were designated for?
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