We are living in some crazy times as banks continue to foreclose on properties. Thousands of people are just walking away from their home because they see no hope for the future with being sometimes as much as 50% upside down in their home. The unemployment rate is over 10% at a national level. People are still losing their jobs each month. Companies are forcing employees to take unpaid vacation and/or salary cuts to keep their job. This hurts the lifestyle of many Americans. People are losing hope and taking desperate measures such as walking away from their house and starting over.
I read a statistic that 70% of the people that get foreclosed on their house never contacted their lender or any other professional. This is an amazing statistic to me. This shows me that people do not know who to contact or what to do when things hit critical mass. Many homeowners have stopped paying on their mortgage and living in the house rent free. They are paying off all their debts to be in a better position. Then, you have other people can afford the payments that have stopped paying their mortgage because their house is upside down way too much to ever come back to even. Is it really worth having a foreclosure on your credit report for seven years? One must really consult experts before making life decisions.
hat options do people have to have their house? Please review the options below:
- Call your lender: It is your duty as a consumer to alert the bank of your current situation. The best thing that they can do is work out a loan modification in order to keep you in the house. This will involve lowering your payments and at times eliminating some of the principal. Each case is handled on a case by case scenario.
- Short Sale-This is when the bank allows you to sell your house for less than what is owed on the mortgage. More lenders are starting to accept short sales to avoid foreclosing on the house. Banks are spending millions of dollars on foreclosing on the house. Plus, the house is vandalized when it is empty. It is better to do a short sale for all parties.
- Deed-in-lieu-This is where the bank takes over the deed in exchange for the payment. The homeowner voluntarily gives the deed back to the bank.
- Foreclosure-This is the last case scenario when steps 1-3 do not work for either party. The bank forecloses on the property to take back the house. The homeowner is asked to leave. Life moves on.
I host a weekly radio talk show here in Phoenix, Arizona, each Saturday. I had a caller on the show with this exact situation. Option #1 did not work because she was over the 105% LTV that was necessary for a loan modification. So, we will be exploring the short sale option with her. People do not know who to call to get the straigt answers.
I have created the ShortSalesBuster Team located in Phoenix, Arizona to assist distressed homeowners. We have professionals waiting to assist distressed homeowners. Yes, we are equipped to hand short sales negotiations to close the deal.
WHO YOU GONNA CALL? HARRY D'ELIA AT 480-303-1800
Make the Call, Set the Plan, Do the Deal$!
Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities. The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona. You can listent to past shows, or stream on-line.
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