Should I Just Walk Away from My Home?
Arizona distressed homeowners feel overwhelmed by their financial situation and the thought of losing their home. Before you just walk away from your home and give the lender the keys, you should look into other options to save your home first.
Options to Save Your Home
All too many times, homeowners just give up and abandon their homes. There is plenty of help for homeowners today. Government programs, housing counselors, short sale companies, mortgage modifications and refi’s. Of course the worst strategy is to do nothing. So what options are available?
Here is a list of some of the most popular options that distressed homeowners have found helpful in saving their homes from foreclosure:
- Mortgage Modification
- Short Sale
- Refinance
- Short Refinance
- Forbearance
- Reinstatement of loan
- Sell your home
Mortgage modifications are used quite often for a temporary solution to a borrowers problems. You need to show the lender that you have a financial hardship and that you can no longer make your mortgage payments at the current interest rate.
With a mortgage modification, the lender will modify your existing mortgage by lowering the interest and/or extending your loan term making your mortgage affordable.
Short sales are good solutions for those sellers who cannot afford their mortgage payments and just want to sell their home. The seller’s lender has to approve the short sale. Short sales take a long time to get approved so you have to be patient. The lender writes off the difference between the loan balance and the sale proceeds. The seller should be advised by an attorney so the sale proceeds satisfy the loan balance so that the lender does not pursue a deficiency judgment against them. Arizona does not allow deficiency judgments, so it is not of concern to Arizona borrowers with purchase money mortgages. Prior to finalizing on your Short Sale have one of our preferred attorneys review your documents and make sure the bank has not changed their legal rights to recourse.
One big advantage to Short Sale is the time table to start over is much quicker. With a Short Sale, depending on circumstances, a seller can qualify for a new loan in 1 to 2 years. I know buying another home is the last thing on your mind, but did you think you would be here 3 years ago? In another couple of years you can fix your credit and get back into home ownership prior to the market going back up.
When you refinance, you are getting a new loan at a lower interest rate and for a fixed rate period, making your mortgage payments lower and affordable. You need to be current on your mortgage payments to qualify and have equity in your home.
An Arizona short refinance is similar to a short sale except you are keeping your home. The current lender agrees to waive part of your old loan balance so you can obtain a new FHA 30 year fixed rate mortgage loan approval for up to 97.75% of your home’s current market value. We have lenders and Short Re-finance companies that can help you with this.
Forbearance is when your lender works out a payment program for you to get caught up on your arrearages over a short period of time. Sometimes they agree to forgive some of the debt entirely. In order to qualify for loan forbearance, you need to be behind on your mortgage payments.
A reinstatement of your loan is when you have paid all the arrearages and any fees and costs.
If you have equity in your home, then you may want to sell it, pay off the mortgage and downscale or a smaller home with smaller mortgage payments or just rent for awhile until your financial situation improves.
Last Resort- Filing Bankruptcy
If there are no other options available, sometimes a homeowner will file for bankruptcy protection. A bankruptcy stays the foreclosure proceeding until the bankruptcy is discharged. Depending on what type of bankruptcy action is filed, the homeowner may be able to retain exempt assets such as their primary residence. Bankruptcy is used as last resort option when additional protection is needed. You should check with a bankruptcy attorney before moving forward. We have attorneys that will give you a 15 minute phone consultation to answer basic questions. Should you need more advise, they are available on a fee basis.
Distressed homeowners in the Phoenix, Scottsdale, Phoenix, Glendale, Peoria and the East Valley should consider options to keep their home whenever possible. Walking away and abandoning your home is not good for anyone. Especially you!
The Cameron Team are certified Short Sale Specialists with extensive experience saving Arizona homes from foreclosure by obtaining positive results with short sales for homeowners in the Scottsdale, Phoenix and the surrounding communities of McDowell Mountain Ranch, DC Ranch, Silverleaf, Grayhawk, Desert Ridge, Desert Highlands, Tatum Highlands and Tatum Ranch. In fact, we have gotten 4 approvals year to date. And we expect 5 or more in the next 30 days.
Before you walk, see what this home owner said about her choice to go forward with a Short Sale.
I ask you all, where were you financially 3 or 4 years ago? Where will you be in 3 or 4 years. The difference in Short Sale vs. Foreclosure to your credit is HUGE! Don’t go the foreclosure route unless you need the tax/legal protection. I can refer you to an attorney to help you with those questions.
If you are in trouble with your mortgage, your steps should be: Can you save your Home? How? If not, do you need the protection of Foreclosure or Bankruptcy? If not, then let The Cameron Team help You save your credit through Short Sale! Contact us for help through all these steps. Our goal is to help at least 200 Struggling Families: 100+ to save Their Home, 50- to get needed protection, 50+ to start new on the road to financial recovery through Short Sale. Call Now 480-502-7699 Or Email Now Jeff@thecameronteam.com
480-652-2004