How do I keep my home when the payments are hard to make and I have no equity to refinance?
I hear this almost daily now and it is one of the toughest questions I have to deal with as a Realtor. No one needs to tell you that Grand Rapids Michigan has been hit hard by the down economy. You hear it every day too.
I have been a certified Home Rention Specialist for about 7 years and have helped many families keep their home or sell through a short sale.
If you have talked with your lender lately it may seem like their actions are saying they don't want to work with you. The truth is that the lenders are so overwelmed with the short sales and remodifications that they cannot keep up with the demand.
Call your lender and ask them if they participate in the HAMP program. If you have a job the HAMP program will re-evaluate your current payment amount. If you qualify they will put you on a 3-4 month trial basis and if you are able to make your new payments on time then you can move on to get qualified for a perminent remodification where they may lower your interest rate to as low as 2%. Go to www.makinghomeaffordable.gov for more information on the requirements.
If that does not work, the next best option is to do a Short Sale. This is where we negotiate with your lender to take less than what is owed on the property so we can sell it at a fair market value. This will put a black mark on your credit, however, it is much better than a foreclosure. Think like a lender for a moment, would you rather work with someone that has bad credit and tried to do their best rectify the loan or would you rather work with someone that let their loan default? Doing a short sale showes you are actively trying to make a bad situation better.
Be sure to contact me if you need help in any of these situations. I can lend an understanding ear and help you navigate through the tough decisions that need to made. |
