Short Sales

When You Can't Afford Your Home Anymore



If you are in a position where you can no longer afford the home you are living in it could be pretty stressful and can cause much fear and anguish within your family. Many people are going through this very issue right now and we are seeing it more and more each day. Not knowing what may happen next can cause a lot of fear and frustration. Millions of people are going through the same situation right now and hopefully are reaching out for help and finding the right people and /or organizations that can help them.

Unfortunately there are also many scams going on and these very people are trying to take advantage of the situation going on right now. So please, be very careful of anything that sounds too good to be true. Especially if someone is trying to get you to deed your house over to them. Just dismiss that individual and don't do it!!

Please look at all of your options. Also, things may seem pretty awful during these times but take action. Do not wait until it is too late to do something about it. Time is of the essence.


1) Home Affordable Modification Program (HAMP) or a Standard Loan Modification : If you wish to keep your home, the first thing that you should do is check and see if you qualify for either program. Through HAMP, the federal government offers borrowers with Fannie Mae or Freddie Mac insured loans the opportunity to refinance into lower interest rate loans. These are not very easy to obtain and according to the Treasury Department, only 4 percent of the homeowners who sign for them actually receive them. They take a very long time and you must be extremely organized and persistent.

2)Loan Workout Program: If you are having a hard time right now paying your mortgage, you should contact you lender ASAP and see if they will work something out with you. They may even suspend some of your payments or allow you to repay your past due payments in installments, just until you are able to get back on your feet.

3)Home Affordable Foreclosure Alternatives Short Sale (HAFA) or a Traditional Short Sale:A Short Sale is when you sell your home and the funds do not cover the balance owed on a loan or loans on the property. Lenders will usually accept a discounted payoff on the loan and allow the sale of the property to close. The bank or mortgage lender will agree to discount the loan due to a hardship on the part of the borrower, most often in full satisfaction of the debt.

4) Deed in Lieu of Foreclosure: As a borrower, if you are unsuccessful in selling your home, a servicer may recommend a deed-in-lieu of foreclosure. This option allows the borrower to voluntarily transfer their ownership to the servicer, contingent upon if the title is free and clear of mortgages, liens, and encumbrances.

In our experience, however, most lenders are not implementing Deed’s in Lieu.

5) Bankruptcy: Bankruptcy may sometimes prove a better option for homeowners, often on account of a “recourse loan” needing to be forgiven. It may result in creating a second mortgage, reducing the home owner’s payments, and allowing owners to remain in their home.

6)Foreclosure: You should only consider this a possibility IF: u cannot refinance or modify your current loan, your bank will not allow a short sale or deed in lieu of foreclosure, and bankruptcy is not an option for you.

It is important to understand that foreclosing will negatively affect your credit as well as make it extremely difficult to rebuild.

7) Other Alternatives: Other alternatives to foreclosing do exist; however, it is important to weigh all the pros and cons involved in your decision. For example, you may consider reaching out monetarily to family and friends, supplementing your income by renting out a spare bedroom, or working a second job.

The important thing is to do something about it before it is too late. Contact your lender first if you think you want to keep your home.

If you are unable to modify your loan or understand you can no longer keep your home, please do not hesitate in contacting us. We have experienced full-time negotiators on our team negotiating all of our short sale transactions, while WE market and find qualified buyers to buy our client’s homes and help them with a new beginning.

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