The economy is taking its toll on many families across the country, and it is having a serious impact on many people’s ability to stay current on their mortgage payments. Unemployment claims continue to rise as more layoffs occur; many other people have experienced significant pay-reductions at their place of employ, as an alternative option to losing their job; others work on a commission basis in a sales market that has been directly or indirectly impacted by the current economy; and then there are couples who are dealing with the unfortunate situation of divorce which may leave either spouse to find that they are unable to swing the payment on their own.
The worst thing a person can do when in this situation is to do nothing. Approximately 1 in 4 of every homes currently on the market in Union County is a foreclosure or a short sale. Approximately 1 in 3 of all homes sold in Union County in the past year has been a foreclosure or a short sale. And keep in mind that this does not even include the many homeowners who are in the process of applying for modifications of some sort, and/or who are working with government-funded and/or non-profit agencies to assist them in keeping their homes.
This economic climate is affecting homeowners in every socioeconomic status, circle, and geographic location. You are not alone by any stretch of the imagination.
Years ago a foreclosure was something no one talked about. Today it has become table-talk. Keep your head up; as you are far from alone. Work with your lender to attempt to get a modification if it is your primary place of residence, attempt to sell your home as a short sale where the bank will accept less than you owe for your home and will most often not go after a deficiency judgment for the difference (make sure this is in writing), or get your mortgage payments added to the back end of your loan and have the chance to start fresh. There are so many options for homeowners. But doing nothing will assure that your home goes to foreclosure.
On another note, however, the reality has been unfortunate in that many homeowners have been finding that modifications have been difficult to get even after going through the very long process, just to find out in the end that they “do not qualify,” for one of a number of various reasons. But at the very least, going through the process will buy you lots of additional time, time that may allow for your financial situation to change. If you are denied a modification, and then experience a change, you can apply for another type modification, buying even more time, or best case scenario resulting in a successful home loan modification that you can afford. Just keep moving forward until you have exhausted every option.
I recently listed and sold a home as a short sale for a client whose foreclosure was continually delayed, for a year, at which time someone purchased the home, and now that homeowner is free and clear and without a deficiency judgment. At the worst, if you attempt a short sale and your home does not sell, and they will no longer delay foreclosure, you may opt for a “deed in lieu,” basically a voluntary foreclosure, which would at least be better than an involuntary foreclosure.
Many credit experts believe that the credit market will have to make adjustments in the future to recognize this period in time where the economy had taken its toll on many homeowners who otherwise had a pattern of excellent credit for years, and then the down-turn economy hit, putting financial pressures on them that were completely out of their control.
For more information, please call us, knowing that you can feel comfortable in talking with someone who truly understands what you are going through and who has the experience and knowledge to guide you through the short sale process, or toward any other option that may be available to you in order to save your home and avoid foreclosure.
Darlene Luther