2 Foreclosure Options for Homeowners with Little or No Equity in Their Homes


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Today’s foreclosure crisis is exacerbated by the fact that many homeowners don’t have any equity in their homes. You see, if you have equity, most likely you can refinance your home loan. But, what if you’re upside down? What if your home appraises at less than what you owe on it? Following are two foreclosure options if you’re a homeowner in this situation.

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Short Sale: A short sale is when you sell your home for less than what you owe on it. Your next question is probably, “but won’t I owe the balance that’s left on the mortgage?” The answer is, “it depends.”

You can do a shore sale with “no recourse.” This simply means that the lender agrees NOT to come after you for the balance due (the deficiency). Whether or not your mortgage holder agrees to this will depend a lot on your financial circumstances and who the lender is.

Learn more about short sales in this detailed article on MortgageNewsDaily.com.

Loan Modification: Basically, a home loan modification is when your lender agrees to “modify” your existing mortgage terms to lower your monthly mortgage payments.

This is becoming a popular tool in today’s foreclosure-ridden market. A loan modification is worked out between you and your mortgage holder. The loan modification you get depends on many factors, ie, your finances, how late you are, who your lender is, the real estate market in your area, etc.

Learn more about mortgage loan modifications and get answers to the most frequently asked questions about it.

Foreclosure Options: Common-Sense Advice for Today’s Underwater Homeowner

Today’s turbulent market can actually work in your favor if you’re a homeowner facing foreclosure, for two reasons:

(i) Banks Don’t Want Your Home: Banks are in the business of lending money, not buying and selling homes, which is what many find themselves doing in this foreclosure crisis. As discussed in this “stopping foreclosure” post here, it costs them money when homeowners walk away from a home and/or are officially foreclosed upon.

So keep this in mind when you are negotiating with them.

(ii) Government Programs Available to Stop Foreclosure: As discussed in this post on home loan modification, the government is giving incentives for mortgage holders to work with homeowners so they can prevent foreclosure.

If one program doesn’t work, try another one. You may have to do some digging, but there is help available.

It benefits everyone for a homeowner to hang onto his/her home. And that’s why so many prevent foreclosure options are available right now.

Gain Further Insight on Mortgage Loan Modifications from the Attorney in the Video Below. Remember, if you’re facing foreclosure, there is help and you’re not alone.

P.S.: You Can Save Hundreds of Dollars — Or More — Per Month on Your Mortgage: There are homeowners just like you who have saved thousands of dollars in loan modification fees. And, they’ve lowered their mortgage payments by hundreds — and in some cases over a thousand dollars — a month. Get the details in this home loan modification kit.

P.P.S.: Found this post informative? Follow Foreclosure Business News on Twitter.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

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