Raleigh Real Estate Group

Especially in today's economy, thousands of people are struggling to pay the bills. This, unfortunately, includes dealing with the threat of foreclosure on their homes. It is possible; however, to avoid foreclosure. Follow these few guidelines to avoid having your home taken away from you.
The very first thing you should do, when you run into trouble, is call your mortgage company. You will need to, specifically, talk to someone in their Loss Mitigation department. Explain your personal and financial situation to them. Plan to divulge information you may not want to share, and be ready to give them proof.
Mortgage companies are prepared to deal with many different financial hardship situations. Depending on your specific situation there are several different options that the mortgage company can take with you. One of the most common is known as forbearance. This action allows you to repay missed payments.
However, there are many other options available. Dependent upon your history and particular situation mortgage companies will allow you to do anything from take out another loan to adding the existing past due amount onto your existing loan. In certain situations you may find they are even willing to waive a missed payment. Remember, you do not get to pick. This is all based off of predetermined criteria.
As crazy as this may sound, some people up and leave a home that they are in fear of losing. This is one of the worst things you can do. Unless you are forced out of your home, do not leave. Your physical presence, in your house, just might save your home. It is much easier to qualify for assistance when you actually live at the property in question. Assistance is offered by different counseling agencies; look into the ones around you.
In many cases people have already receive a Notice of Default. This is bad, very bad. What this means is there really is not too much help for you. One of the best options, at this point, is to sell your home. After all, you do not have many options. Either you lose the house and ruin your credit, or sell it and have a chance to start over again.
There are a couple other options, at this point, but they will you're your credit almost as bad as the foreclosure would. Just keep in mind that you have options. Acting before things get out of hand is your best option and will be the one that works for you. Do not let things get to the point that there is no return. If you want to avoid foreclosure, work with your mortgage company immediately.
Learn how to avoid foreclosure by using short sales. Head online today and you can learn how a short sale will help you out.

It seems that although the Government has put a law in place to help Americans keep their home by filing for a loan modification they left one of the most important factors out of the equation, THE LOAN PRINCIPLE! In a loan modification the banks are only looking at adjusting your monthly payments. They are not forgiving any of the principle balance regardless of how much your property value has decreased. In most cases the banks are adding on fees to the principle amount. This is why some borrowers have decided to dismiss the hectic loan modification process and take matters into their own hands.

The "Strategic Default" is a term I came across from an article I was reading on the foreclosure crisis. Apparently some homeowners have decided that it is better to walk away from their homes from a financial viewpoint. The example they gave in this article was amazing and I must admit, that in some cases walking away does make financial sense but what about moral sense?

Let us say you bought a home in 2005 when home prices were moderately high. Now that same home has gone down in value by 40% but your principle balance does not reflect that. Do you still have the obligation to the bank to pay what you originally agreed to pay? The borrowers that walk away say, "no." Their opinion is the real estate market was inflated with dishonest values making their loan principle invalid. Do you agree?

The borrowers that choose to walk away assume some very negative consequences. In most cases their credit profile will show a foreclosure and their scores tank. They are subject to being sued and having judgments against them. They are in most cases forced to become renters. Now their bad credit scores are under scrutiny and evaluated before they can get utilities, insurance and a host of other services. Will walking away really be worth it in the end?


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