If your mortgage is pushing you far underwater, there is an alternative to foreclosure. Remember, banks would rather have you paying the mortgage than letting it slide. If they go to foreclosure, then they have to go through all of the legal hoops of re-claiming the home, then they have to try and sell the home. For them, it's a headache that they'd rather avoid.
Enter loan modifications. To get started, you'll have to contact your bank. Keep in mind that some banks are more open to this than others. Often times, it's done on a case-by-case basis. When you contact your bank, don't just call customer service. That will often lead you in a big circle -- or worse, they'll tell you that it's not possible when it really is. Instead, try to talk to one of these departments:
-Loan modification
-Homeownership retention
-Loss mitigation
There might be another name similar to that depending on what your bank uses. A good way to try and get the inside track is to search online message boards to check what people have experienced with a specific bank.
When you finally get through to someone, make sure that you have proper documentation detailing your financial hardship. This can be change in marital status, a medical condition, job loss, or something along those lines. You need to be able to have something to present. In some cases, you might need to be behind on your mortgage too.
Loan modification is possible if you're persistent enough. Make sure you do your research before you dive into it; otherwise, you may find yourself accidentally closing more doors than you open.
Israel Gonzalez
Real Estate Broker
831-636-8858
www.bestreohomes.com
Click here to contact me by email
The views published here are the opinions of the writer and are not a substitute for legal counsel.