Modification - Alternative Options.
Sometimes a modifications will not serve any real benefit. For example, if you lose a significant portion of your income, and your home is too expensive, there may not be a mathmatical solution. An example of a recent client may clarify.
She was 70 years old and had never held a job. She was a housewife and mother for many years, but didnt pay anything into Social Security. Recently her husband decided he was leaving and packed up and moved. The only source of income was his Socisal Security and retirement. She is not eligible to get any income and is left with a house payment.
In this case, the modification is a waste of time and money, because there is no way she could make the payment if there was no interest on the loan.
Now what?
Option 1: Sell your home
Sounds obvious enough. If you cant afford your home, you should probably sell it. Take the proceeds and buy your next home. Redwood Real Estate Sales can help you with any buying or selling.
Option 2: Short Sale
A short sale is when you sell your your home for less than what you owe on it. This requires consent from your lender. More information on a short sale and a realtor that can help you at Redwood Real Estate Sales
A common question is: "why bother" There are many legal reasons why you would want to pursue a short sale instead of a foreclosure. compare a shortsale and a forclosure.
Option 3: Let it go to foreclosure.
If you can't get it sold in time or you choose to not try a short sale, you will eventually get foreclosed on. To see more on why you would rather do a short sale instead of go to foreclosure visit Redwood Real Estate Sales.
Option 4: Refinance
With new programs coming out everyday, the latest is a making home affordable refinance. This program will allow you to refinance to a great interst rate with loan to values up to 105%. There is no Mortgage Insurance, and sometimes no proof of income. Call us to get more information.
