So many homeowners in crisis feel alone, ashamed, confused and
angry. Many are at a loss about what to do with their home -- walk
away, short sale or jump in to the maw of loan modification.
Homeowners who have decided to walk away, or those who lie awake
considering it, need a comprehensive resource as well as a forum to
read and discuss what other homeowners are experiencing. THIS IS IT!
Many HOMEOWNERS don’t realize they HAVE POWER when dealing with their
mortgage company, and feel trapped and anxious over the pressure some
mortgage companies apply when short selling or foreclosing on a home.
Here are some questions you should ask yourself:
When is it a “good” idea to walk away from your home?
What are the other options?
What are your rights when dealing with the mortgage company?
Should you hire a lawyer? When and why?
How do you prepare for a short sale?
When should you be ready to move once you stop making payments?
What does a foreclosure or short sale mean for your taxes? How can you
protect yourself?
If you have good credit, how can you best protect it to regain your
good status as soon as possible after the situation is resolved?
Should you buy renter’s insurance because your home insurance is no
longer in effect?
If you own rental property and plan to move to that property after
your home is sold or foreclosed, will you owe money on the tax
depreciation?
How much time, typically, do you have to move once you are alerted by
the mortgage company to vacate?
How much should you expect to pay for a short sale, if anything?
What is a deficiency judgment? What should you be aware of when
signing this document?
It can take weeks to put together a hardship letter for the mortgage company, or put together a letter that let's the mortgage company know you are no longer making payments until you can get a loan modification. Many homeowners don't realize they have the power to work with their mortgage company for a viable solution to their future.
What has been your experience? Did you feel good about working with your mortgage company? What advice do you have for other homeowners thinking about foreclosing or short-selling? How do you feel about leaving your home?
We'd love to hear from you, and we will answer your questions from qualified professionals when appropriate.
While we can afford our payments, we can't afford to stay in our neighborhood with a balloon payment coming up afetr 10 years. We don't want to leave, but the bank won't talk to us until we are behind. We like having good credit, it took us through our 20s to get good credit and we hate to give it up, but we think it's a good idea to do that instead of continue to put ourselves in the hole that has become our beautiful home.
ReplyDeleteI don't know how to stay in my home and save for my school-age children's future.
ReplyDeleteI am so happy that someone is doing a blog about this!
ReplyDeleteWe have been caught up in this whole paperwork procedure. A year ago my husband had a decrease in salary and another one starts again this month.
We started to modify our home last November with our bank ourselves. It was the worst experience! We gave them tons of paperwork over and over again, we even faxed within the bank to the same bank! Paid USPS to make sure they got the paperwork. But we were denied because they never got the paperwork! Unreal. Its just a stall tactic. Shows you banks don't want to really help.
Our second try had a relator do this and they offered to do it free. They went through everything again, more paperwork from us more hardship letters again. Then to find out because we are on time they denied us. After depleting all of our savings!! The relator suggested we stop making our payment. Do u know how hard that is to do?? But we did it for one month!
Then I was watching the news about 3 weeks ago and saw a bunch of people being interviewed down at our convention center about how NECA was helping the homeowner. So I thought thank God, let's give this our last try before we think about short selling our home. We went down there and more paperwork involved. But they talked about how the program worked we went through all the steps, same type of paperwork but with them, spoke with a counselor on the phone there then proceeded to speak with our banker and NECA together. Most people were finding out on the spot whether they got help, clapping was going on, it made you feel wonderful. When we left she told us we would know something in 3-5 hours. When we got home, we got a call twice! They totally are giving us the full moralization, we have a trial period and I hope they stick to it till November. We are excited to say the least, feel like so much stress has been lifted.
I will keep everyone posted as to how it goes.
We are a older couple that just wants to stay in our home till we part this earth!
The web page is: www.neca.com
Check the site out for more information
What a great story PP! Hope more people get the help they need. It's tough out there, so confusing! I'm going to contact this neca. Do you have to get your paperwork done ahead of time? Was that hard?
ReplyDeleteIt's hard to know the "right thing" to do. I tried to negotiate with the mortgage company that holds a second mortgage on an investment property now work less then 1/3 what I paid for it and costing me hundreds each month (even with a tenant). I was willing to make some kind of payoff rather than walk away, but they simply were not interested. I guess they get more from their insurance if I default. So again, I want to do what I think of as "right" but the lender is not interested at all!
ReplyDeleteWhat we need is a partnership with the banks and the mortgage insurance companies. If the home is forclosed upon, the insurance pays the entire amount to the bank. This keeps the bank from wanting to cooperate with loan modification. If the mortgage insurance companies would participate and pay the bank the portion of the loan necessary to bring the loan to market values, it would be a corporate win/win. With fewer abandon homes, the neighborhoods could retain some value and stop this downward spiral. How do we get this type of solution thought to the powers that be?
ReplyDeleteYou are right...we need to do something different and perhaps using mortgage insurance in a different way is part of the solution. Homeowners are paying for the mortgage insurance, so it would be great if it could work for them in this way.
ReplyDeleteI am a reator and the values in our area have dropped like a rock. The abandon homes and short sales continue to bring down value.
Perhaps through this blog we could start contacting our representatives in Congress to mandate a partnership with banks and mortage insurance companies. We have VA loans in our town and they are guaranteed through the VA Administration. If Congress were to consider such a plan, they could start with the VA quickly and help our military families.
For Neca they tell you what to bring if you are going to see them in person. On line I don't know exactly how they do it.
ReplyDeleteLet me share some good stuff with you on your beautiful blogs. I was able to purchase a property with help from Mr Pedro and his loan company team were quick to respond and since this was my first time getting a loan to buy a property , he was able to help me walk through the loan process. It was a great experience working with a good and kind loan lender. I hope you know very well if you are looking for a loan to purchase a property or funding business purposes then this message is for you will be able to help you with such a process here his details Email Address: pedroloanss@gmail.com & whatsapp text: +18632310632
ReplyDelete