I get many calls from people looking for great deals on power of sales and foreclosures. As you know in life when one looses the other gains. Well this article addresses the other side of the story. As many of you know I am called for positive occasions and also for negative occasions. There are many changes in life that sometimes will not allow us to continue to pay all our financial commitments.
No matter what the situation you should take control and face the bank and financial institution. The most important thing is to take action quickly before it is too late. If you take quick actions, the bank is sometimes willing to renegotiate the terms of the mortgage, CHMC or Genworth sometimes have programs to assist, and I have even seen the banks allow you to skip a couple of payments.
Many times you have equity in the property; this can disappear quickly when you stop paying. The best thing to do is to put the house on the market and take out your equity. Even if you break even, you are still better off because the house did not go power of sale, meaning that you did not end up with of a record of non payment. Unlike a bankruptcy, I have seen where the bank that went power of sale and CHMC, have not easily forgiven the person that did not pay. This means that years down the road it would be very difficult to purchase another home with less than 20% down or to get financing through that bank or finance institution.
If things seem to be that you cannot easily sell, I have also seen some financial institutions allow a short sale, meaning that they have reduced some of the penalties and interest, in order to allow for the house to sell.
There are many steps and strategies that you can do minimize your losses and that of the bank. The main thing is to be aware of the process, and keep an eye on how much time you have left. Just as a reminder, if they mention that they are sending it to their legal department, this means that you will now be charged legal fees and that there is normally no more negotiating, just pay the full arrears.
No matter what the situation might be, give me a call and I can assist you.
No matter what the situation you should take control and face the bank and financial institution. The most important thing is to take action quickly before it is too late. If you take quick actions, the bank is sometimes willing to renegotiate the terms of the mortgage, CHMC or Genworth sometimes have programs to assist, and I have even seen the banks allow you to skip a couple of payments.
Many times you have equity in the property; this can disappear quickly when you stop paying. The best thing to do is to put the house on the market and take out your equity. Even if you break even, you are still better off because the house did not go power of sale, meaning that you did not end up with of a record of non payment. Unlike a bankruptcy, I have seen where the bank that went power of sale and CHMC, have not easily forgiven the person that did not pay. This means that years down the road it would be very difficult to purchase another home with less than 20% down or to get financing through that bank or finance institution.
If things seem to be that you cannot easily sell, I have also seen some financial institutions allow a short sale, meaning that they have reduced some of the penalties and interest, in order to allow for the house to sell.
There are many steps and strategies that you can do minimize your losses and that of the bank. The main thing is to be aware of the process, and keep an eye on how much time you have left. Just as a reminder, if they mention that they are sending it to their legal department, this means that you will now be charged legal fees and that there is normally no more negotiating, just pay the full arrears.
No matter what the situation might be, give me a call and I can assist you.
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