2 of 21

Write now Article Tools

Page 2 of 3

interest rate. Lowering your interest rate may be advantageous to your lender because it costs far less than foreclosing on your home. If you haven't refinanced in a while, this alone may lower your payments to an amount you can handle.
Think other ways to generate income. If you feel the property is worth keeping as an investment, consider taking in boarders, finding an extra job, or renting the house out for a few years. Make a business plan for this just as you would any other business venture. Estimate your extra income and the number of months or years you'll be able to tolerate the inconvenience, conservatively.

* Learn the market value of your home. Scout home prices and notice how many houses are for sale. Then, see how many are bank owned. Use your acquaintances in the real estate business to get more firm data from sources such as the multiple listing service. Look at how quickly homes like yours are selling. From all this, you'll get a rough idea how your home value compares to the amount you owe on your mortgage.
* List your house for sale if necessary. Use recommendations of friends and family to find a top notch real estate agent who's experienced in dealing with difficult to sell properties. Check your agent's references. Many home seller skip this important step, and disreputable real estate agents rely on this fact. When pricing, remember that your goal is to be relieved of the burden of large mortgage payments-price your home to sell fast.
* Talk to your home lender again as soon as you have scoped out the value of your home and likelihood of selling it. Discuss the most common remedies for avoiding home foreclosure: These save you from some of the negative impact a foreclosure will have on your credit rating.
In many localities, foreclosures are rampant and lenders want anything but another bank owned property. If your home is worth less than you owe and if your neighborhood has many homes for sale already, your lender may be willing to accept what ever amount you can get for the sale of your home as repayment of your mortgage, in what is called a "short sale".
In another scenario, a home may remain on the market a long time despite competitive pricing and valiant efforts by the home owner to sell. When other reasonable options have been exhausted, the bank may allow you to deed the property back to them. This is called a "deed in lieu of foreclosure". Banks used to be reluctant to take a deed in lieu of foreclosure, but that has changed with

• << previous page
• 1
• 2
• 3
• next page >>

Add your voice

Know something about Saving your home mortgage from foreclosure?
We want to hear your view. Write now!