With the entire Nation being in the negative or below water with the mortgages many home owners are asking what they should do:
Here are the pro active options that you should consider:
1- Walk away: This maybe an option but on that should be a last resort, if it is even on to be consider. Of course the easy way out if the one most people will consider first. As in most cases the easy way out is the the best. This may ruin your credit for 7 to 10 years and recuperating from this can be very hard to buy a home again in the future. if you decide the bank referes to it as ” Deed in Lieu of Foreclosure”
2-Wait it out: Yes staying in your home is an option. What you should consider is how much are you upside down? Then have some one looking into current values in your local area. Determine its current value and based on national/state or community appreciation rates calculate the ideal time or recovery for your property. Remember all real estate is local. if you need some assistance with this calculations shoot me an email.
3- Modify your Existing Loan: Banks are doing this, you can do this on your own or consult a specialist in Loan Modification. I have seen modifications that work for the client and other that are totally ridiculous and only benefit the bank.
4- Short Sale: If you look at all the other option and decided that you still can not see the light! Here is the best alternative you have heard it every where, “SHORT SALE”. There is both a great benefit to the Seller and the Buyer in this case. Buyer acquires the property a a great value, and Sellers sells with the negative portion of balance to be forgiven in most cases by the Banks.- Plus NO FORECLOSURE on your credit.
Right now most of us are worried to our stomachs of what is going to happen. Although I know it may be difficult to make a pro active choice it critical that you make it. Your happiness depends on it.
