The situation you face with your home is unique to you, so let’s develop a strategy to help you get the most from your residence if you’ve fallen behind in payments.
If you’ve been in a forbearance program through Covid relief, the program will likely end soon and you may be wondering what to do next. How will you handle your mortgage payment?
It’s important that you see how realistic it is for you to become current with your existing mortgage payments. You may see yourself getting caught up in the next few months so talk to your lender about loan a modification. Adjusting the terms can make it easier to get on track with a monthly payment.
But what if you do an honest assessment and decide that catching up with your mortgage payments is a great hurdle that’ll cause a cash shortfall in other areas of your life? The reality of foreclosure becomes real.
Plan two things:
· how you avoid foreclosure
· where you might live next
An acceptable way to avoid foreclosure is through a short sale. This is where you present your situation (and I would assist you in this) and work with the lender to sell the house at below market rates.
Lenders will agree to do this because they can recover at least a portion of the total balance due. At the end of this post, there’s a link to Investopedia with an overview of the process.
Talk with Your Lender
When you’re falling behind, it’s tempting to avoid opening the envelope or email reminding you that a payment is due. But it’s important that you open the notifications and communicate with the lender, even if you’ve not finalized a short sale agreement.
They can see that you’re operating in good faith.
This is an area where I can help you.
It’s smart to have a seasoned professional work with you in arranging a short sale with the lender. I work with a caring team, and we’ll communicate with the lender on your behalf to get approval and begin the process.
But let’s also focus on the second part mentioned above: where you might live next.
My real estate career has spanned more than 30 years and I know the highs and lows of investing in properties and the joys and pain points of home ownership. When I offer to help, I understand your situation and need.
Finding workable solutions for my clients makes my work rewarding.
Consider this as an angle for where to live next: buying a vacant property or other parcel of land and putting a manufactured home or modular home on it.
I’ve posted extensively about the benefits of manufactured homes for young families and empty-nest couples who are downsizing.
Here are a couple of blog posts to read:
Use Land and Manufactured Homes to Take Control
Knowing the Differences Between Manufactured Homes and Modular Homes
Manufactured homes have living spaces that can range from around 800 square feet to 2,900 square feet. The amenities in terms of kitchen, bathrooms, and bedrooms can be as appealing as traditionally built homes but at a fraction of the cost.
Leverage My Resources
I invite you to make use of my resources whether you’re considering a short sale to avoid foreclosure or if the idea of property for your next home sounds viable.
Please read what others have said in my work with them on my Testimonials page. Building a positive reputation through trusted service means a lot to me.
Also download my free guide, Your Guide to Buying Land: The Heart and Soul of America.
If we work together, then I want to make sure that you’re served well.
Contact me for a brief consultation.
A Short Sale Overview
This is a good working definition from Investopedia:
A short sale in real estate involves selling a home for less than the balance remaining on the mortgage.
Before the process can begin, the mortgage lender must sign off on the decision to execute the short sale, also known as a pre-foreclosure sale. The lender, typically a bank, also needs documentation that explains why a short sale makes sense. After all, the lending institution could lose a lot of money in the process. No short sale may occur without lender approval.