Just let the bank take it?

Perhaps you have heard about it. On the news, a reporter tells a story about how the housing crisis has caused some homeowners to simply walk away from their homes. It sounds crazy, but many people are being led to believe that walking away from their home is a good, perhaps the best, option.

It’s called Strategic Default. For distressed homeowners who believe they have no choices left, the idea of walking away free of consequence may sound like a relief. The reality, however, is that choosing strategic default has terrible repercussions, and not only on your credit report.

THERE ARE BETTER OPTIONS AVAILABLE!

Short Sale
Generally considered one of the most viable alternatives to foreclosure, short sales allow homeowners to minimize financial damage and move on from a burdensome, unaffordable mortgage. In many cases, short sales allow borrowers to qualify for a new mortgage in as little as two years, as opposed to five years or more after a foreclosure.

Benefits of Short Sales
*Avoid foreclosure at no cost to you
*Less long-term impact on credit scores
*Security clearance protection
*No challenges to future employment
*Retain some control over the sale of your property
*The ability to negotiate away a deficiency judgment
*Shorter waiting periods to get another mortgage

Demystifying Short Sales
There are many myths about how short sales work, including the rumors that they have the same affect on your credit as foreclosure and are impossible to complete. I can show you how that’s just not true, and how securing a loan for a home in the future is much quicker after a short sale rather than a foreclosure. New bank and government short sale programs have also made the short sale process more streamlined and efficient process for all parties involved. Some bank programs even give you, the seller, a “relocation bonus” of anywhere from $3,000 up to $30,000 for completing a short sale.

Doing nothing does not solve anything!

Strategically defaulting guarantees that the maximum credit score consequence will result. There is no ability to negotiate, no opportunity to create a better situation for your future, and no chance of buying a new house for at least seven years.
When you contact us, we will go over your options to avoid foreclosure. Above was a brief overview of a short sale, below are some other possibilities:

Reinstatement
Was the reason you missed your payments temporary but has since been resolved? If you can make a one-time payment that includes all missed payments, legal fees and late fees, you are eligible to be reinstated back into your loan agreement.

Rent the property
Renting your home might be an option which enables you to pay your mortgage. You are still responsible for all costs associated with the house including maintenance and taxes.

Mortgage Modification
In some cases, you may be eligible to modify your loan in a way that reduces principle or lowers payments. Some of these programs vary from bank to bank but there are also government-sponsored programs which are available to help homeowners in distress.

Bankruptcy
In some cases, bankruptcy is an option. It may stop foreclosure and allow you to reorganize your debt. However, the stoppage is only temporary and if you are still unable to make payments, then foreclosure will go through anyway. It also makes a property much more difficult to sell.