Hello,
It's a shame that many have found out the hard way about those subprime mortgages as well as seconds are now turning up the heat and many cannot keep up. What should you do ....Give up? let the house go back to the bank in foreclosure?.
Well there are a few things you can try before you throw in the towel.
1. Before you get to far down the road I am sure you have seen the signs that it is getting to be to much to handle. Call your friendly mortgage brokers to see if they can help you refinance to a better fixed rate while you can still qualify.
If you are not in a position to do this......
2. Call your Mortgage company and explain your situation and ask for help. If the person on the phone can't help then ask for the loss mitigation dept. Believe me, the Mortgage Co does NOT want your home and you may find them willing to work with you in creating a deal you both can live with. There is no shame in asking for help and they are willing to help.
3. Try to reduce other expenses like cable TV bills, Cell Phone (NEVER) fewer dinners out etc to make up the difference in your monthly budget. The roof over your families head is more important than luxuries.
4. Call your local realtor and ask for their help as well. They may have contacts who can help you....after all we get to see this every day. PLEASE...don't wait until you are 5 or 6 months in arrears and the bank tells you that you have 10 days and it's gone. If you call us in the beginning we may be able to help you out of the situation by selling your home and saving your credit
5. Your realtor, with your help, may be able to arrange a short sale with the bank again in hopes of saving your credit to buy a new home you can afford. ( Your Realtor can explain a short sale )
The most important one of the above is number 2 ....Call your Mortgage Co. Most of them really want to help you through the tough times. It costs them far more in the long run to foreclose than to work out a deal with you that you both can live with.
I here from people everyday who say at the very end ...days before foreclosure.....what can I do?.....and my response is " I wish you had contacted me sooner and I may have been able to help". There are no guarantees that trying to sell or attempting short sale or even renegotiating with the Mortgage co will work, but I can assure you that doing nothing and waiting for the padlock on the door is not the way to go.
Remember....damaged credit can be repaired fairly quickly.....Foreclosure will stay with you for a long time.
Call your realtor for help early on. Moving to a smaller home is nowhere near as bad as losing your home.
Call us if we can help
Ed Boyer Broker Associate
GMAC RE Real Property Group
Windermere, FL 34786
407-406-0596