mortgage challenges? you have options -...
TRANSCRIPT
If you are facing financial challenges with yourmortgage, you are not alone. According to aDecember 5, 2008 article by the AssociatedPress on MSNBC.com entitled, 1 in 10homeowners in mortgage trouble, “A record onein 10 American homeowners with a mortgagewere either at least a month behind on theirpayments or in foreclosure at the end ofSeptember as the source of the housing marketpressure shifted from risky loans to thecrumbling U.S. economy.” Here in California,3.9 percent of all home loans are in foreclosure,compared with about three percent nationally,reports the MSNBC.com article.
If you are among the 3.9 percent of Californiansfacing financial challenges with your mortgage,you do have options. According to a January27, 2009 RISMEDIA article entitled, ForeclosureMoratorium Spurs New Interest in Short Sales,“The national foreclosure moratorium imposedby Fannie Mae and Freddie Mac, major bankssuch as Citibank and Bank of America, and ahost of state governments has created a‘breather’ for homeowners in default. Byworking with loan servicers, some homeownerswill be able to modify their loan terms and stayin their homes. But many won’t.”
In addition to loan modification, options forstruggling homeowners may include foreclosure,deed in lieu of foreclosure, short sale andbankruptcy. Among these options, the onegrowing in popularity is the short sale, accordingto RISMEDIA’s article, especially sinceforeclosures can be so pricey for the banksinvolved. Before you make a final decision as towhich option is best for you, however, please consultwith your legal and tax advisors.
What is a short sale and what isthe benefit?
“Short sales are when the lender allows adistressed property to be sold at a price lowerthan the homeowner’s mortgage indebtedness,with the difference forgiven,” says RISMEDIA.The article went on to report that a short sale“also typically allows the new purchaser to buyinto the neighborhood at a substantial discount,much more in line with the property’s true,current market value. In other words, shortsales facilitate efficient clearing of the market.”
If you are currently a homeowner facing financialchallenges with your mortgage, is a short saleyour solution? Only you and your legal andtax advisors can determine the right course ofaction for you.
If you do decide to proceed with a shortsale, Coldwell Banker ResidentialBrokerage can help.
As a trusted real estate advisor for our clientssince 1906, we at Coldwell Banker ResidentialBrokerage stand behind a century of experience,strength and expertise in the local housingmarket. To that end, we are committed tohelping our clients with their real estate needsby continually evolving our resources, tools andstrategies so that we may provide the bestservice possible in good times and bad.
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Y O U H A V E O P T I O N S
Homeowner Resources
In addition to a short sale, thereare other options to consider ifyou are facing financial challengeswith your mortgage. It’simportant to research all of youravailable options and then consultwith your legal and tax advisorsas to which option is best foryou. Coldwell Banker hascompiled a list of useful links togovernment and communitybased nonprofit organizationwebsites which includeinformation on foreclosureprevention, loan modification, nocost HUD approved counselingservices and other importantinformation.
U.S. Department of Housingand Urban Developmenthttp://www.hud.gov
U.S. Department of Housingand Urban DevelopmentGuide to Avoiding Foreclosurehttp://www.hud.gov/foreclosure/index.cfm*Talk to counselor
Federal HousingAdministrationhttp://www.fha.gov
Hope Nowhttp://www.hopenow.com
Internal Revenue Servicehttp://www.irs.govSearch for : Mortgage Debt
Relief BillClick on: Home Foreclosure
Debt Cancellation
MORTGAGE CHALLENGES?