Homeowner Evictions For Those Who Can’t Pay Their Mortgage
There is little hope for homeowners who have stopped paying their mortgage payment and sit at home behind closed doors waiting for the bank to force them out. Here are two personal reviews from people who’s business is to negotiate between Banks and Homeowners Who Can No Longer Pay Their Mortgage.
Some homeowners do not pay their mortgage not because they can not, but because the home has lost so much of it’s value (negative equity property), they are requested to pay for property (their home) which is not worth paying for. Unfortunately the restructured Home Affordable Refinance Program (HARP) is too late to help them and they will soon join the dark statistics of the nation’s foreclosure list.
Bank Realtors and Homeowners Facing Foreclosures
“The nation’s, and Brevard’s, economic recovery depends in large part on restoring the housing market. That effort will be slowed by foreclosures, area Realtors suggest.
“If the economy recovers and people have jobs and can pay their bills, we’re fine,” said Realtor Gene Collins, a past president of the Melbourne Area Association of Realtors who handles foreclosure sales for banks and others. “But there are new foreclosures happening every day. (Homeowners) are making an economic decision they’re not going to pay the mortgage anymore. Eventually, that becomes another foreclosure.”
Though there are positive signs in the housing market — through September, sales of previously occupied homes are nearly 16 percent ahead of last year’s pace — the tough times in the real estate and housing markets may linger.
“I hate what I’m doing,” Indialantic real estate attorney Jonathan Lack said. His title insurance company and real estate law practice has adapted to handle foreclosures and loan modifications, and business is booming.
“I’m a transactional real estate attorney who’s had to adjust what I’m doing,” Lack said. “I have people crying in my office. It’s a hard, stressful, sad time. Most of my closings are short sales.” Those are the transactions where the bank accepts a sale price of less than the homeowner owes on the loan.
Lack mostly works to arrange deals between banks and homeowners who can no longer afford their mortgages.
“Within my office the ultimate goal is a graceful exit, as opposed to my client being foreclosed on and forced out,” he said.
“Every so often I get one that’s not a short sale and it’s exciting.” See more on this issue
People should know that going into foreclosure means they will have a negative mark on their FICO report for 10 years! This means not only they will be eventually moved from their home, but in the future when they will want to rebuild their life again, the foreclosure remark will be stamped all over their FICO report.
No sensible lender will risk giving funds to borrowers who fail to pay the mortgage and fall to foreclosure. The credit score would be severely damaged. Choosing an underwater property short sale solution may be a better way to solve this issue between Banks and Homeowners Who Can No Longer Pay Their Mortgage.
So What Is The Next Step?
If you will do nothing.. don’t expect anything to happen. You must bump your credit score up! It will give you better leverage when facing the lenders, and better negotiation position when applying for any financial need.
Lets not forget you are probably paying $500-$1000 extra per year in higher interest rates, and credit payments to those rich credit companies pocketing your payments hoping you keep doing nothing.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket. Don’t be cheap when it comes to financial education.. Ignorance costs more.