Before you make any moves to call your lender, put your home on the market or use savings, retirement or credit cards to pay your mortgage, figure out what you can afford and how to move forward.
Call your lender within the first 30 days of not being able to pay. Ask for a Forbearance or a Loan Modification.
A forbearance is a special agreement between the lender and the borrower to delay a foreclosure. A Loan Modification changes the terms of the mortgage to make your monthly payments more affordable. You can ask to change the interest rate or length of the term.
If this is temporary, sometimes renting the home for a year or 2 will allow you to recover. Here is the formula.
By now you all know what a foreclosure and a short sale is so I won't go into that. This is about what should you do.
If this is an option you want to be sure that your payment is covered: Here is what you want to include:
CALL AS SOON AS YOU KNOW YOU WILL NOT BE ABLE TO MAKE YOUR PAYMENT!!!!!
We can help you speak with your lender to be sure you are getting the best deal. You will want to ask for:
Short Sale is only if your home is worth less than you owe! When the first 2 don't work, give us a call. We can help you determine if this is a short sale or an equity sale. We can work with you get it listed and sold within a time frame that is right for you. We work with the lender and update you throughout the process.
Foreclosure is an option but not your best one! Especially if you have equity in the property!
Non Judicial States take some time to foreclose.
Here is the timeline: