Have you recently suffered a major financial loss and can no longer afford your house note?

Have you already missed one or more payments and the mortgage company is stressing you out with harassing phone calls and letters?

Do you need to sell your home, but you owe more than your home is worth?

 There may be relief for you.  Below are some of the options available.

Option number one is catch up any past due payments, including penalties, in one lump sum (no partial payments will be accepted). All will be forgiven by your lender and your loan will be reinstated. (This might fall in the category of wishful thinking.)

Option two is to ask for a payment modification (HAMP). Your past due payments, plus interest and penalties, can be added to the back of the loan. Unfortunately, if you have previously used this help, you may not be eligible for a second loan modification.

Option number three is to take out a separate loan (a 2nd mortgage) to cover the missed payments, almost certainly at a much higher interest rate. However, this second house note would be nearly impossible if whatever caused you to miss your house notes in the first place hasn’t been resolved. Can you somehow now afford a second monthly payment?

Option number four is to do nothing. Throw the past due notices in the trash and hang up the phone when the lender calls. You can now be guaranteed that your lender will start foreclosure proceedings on your home immediately. You will eventually be evicted, and after the bank has resold the property at a fire-sale price, you could be hit with a ‘deficiency judgment’ for the difference between your mortgage balance and the fire-sale price.

Option five is to immediately call a Realtor who is experienced in doing a Short Sale, and try to get your house sold as quickly as possible. Because this may involve selling the house for less than the mortgage payout, you need a Realtor experienced in handling short sales who will guide you through the maze of paperwork and in the end, actually negotiate a settlement between you and the lender. And while it may be stressful at times, a Short Sale is usually successful in stopping the foreclosure process and in most cases, getting the mortgage deficiency against the homeowner forgiven.

In short, it is heartbreaking and scary when faced with losing your home. But if you are already one house note behind and see no way to catch up by the end of the second month, get help. Ask your lender about adding missed payments to the back end of the mortgage. And if you’ve explored all options with them, and still see no viable solution, it may be time to sell. Call an experienced Realtor who can guide you through the Short Sale process.

In summary, foreclosing on your home is absolutely the last thing any lender wants to do. So you must demonstrate you are being proactive and taking action, not just ignoring their notices and phone calls. They will be willing to work with you and your Realtor. But keep in mind… the clock is ticking. You do not have time to waste.

Note: I have done many short sales over the years and will be glad to discuss your situation with you in person. I can be reached at the number above.