FACING FORECLOSURE? Some Important Information You Need To Know
By: Christine Moscinski, Broker Associate @Gobber Real Living Realty - Chicago, Illinois
SEPTEMBER 22, 2012
If you are more than 3 months behind in your mortgage, you are not alone. Many are struggling with job loss and are now losing their homes.
"More than 2.3 million U.S. homes have been repossessed by lenders since the recession began in December 2007. The firm estimates more than 1 million American households are likely to lose their homes to foreclosure this year " (source: RealtyTrac).
If you know you cannot catch up, your time is running out - fast. You need to know your options. Here are some helpful tips when talking to your lender:
- Call Your Mortgage Lender to see if you can refinance at a lower rate (most require 12 months no late pays). Rates are currently at of 4.25% - 4.75%.
- Ask your lender for loan forbearance. In these cases they may extend your 30 year loan to a 40 year and tacking on what you owe to the end of the mortgage note.
- Finally, if you know you cannot qualify due to loss of income and want to try and save some of your home’s equity, talk to your lender about a short sale. Find a Realtor® experienced in negotiating short sales that will sell your home quickly for what you owe the bank.
- If you are “under water in your mortgage”, owing more to the bank than your home is worth, there are ways to negotiate with your lender ask for a “loan modification”
DO:
Place Your Home in Short Sale: It can save your credit score. If you allow your home to be taken away in foreclosure with court proceedings, be prepared to pan up what you owe the lender for the mortgage note PLUS all legal fees. This may mark on your credit for 3-7 years and sometimes longer.
Call an experienced Realtor®: Or several in your area and interview each of them to make sure you get the best candidate to do the best job for you. You need to sell your home fast and for the most money.
DON’T
Do not Sign Your Deed Over to Someone! There are many people scamming and taking advantage of these current situations and this will NOT relieve you from owing your loan note.
Do not give anyone your personal information over the telephone or anyone you do not know and trust.
Do not pay anyone for loan counseling or to someone that says they will “save” your home for a “fee”. Loan counseling is FREE through HUD (U.S. Department of Housing and Urban Development)
For More information: Contact HUD to research your options or call Christine today for answers at (708)369-8094.
Christine Moscinski is a Broker Associate and member of The "House Hunters Team" at Gobber Real Living Realty - Specializing in Local Real Estate Markets - Short Sale & Foreclosure. Call her if you are in need of professional advice and guidance and get the answers you need today - You'll be glad you did!
TEL: (708)369-8094 Available 24/7/365 - Visit her website at: http://www.ehousehuntonline.com and Twitter @cmoscinski