Short Sales Instead of Foreclosure
Being upside down in your mortgage these days is not atypical, especially if you purchased your home within the past two to three years (at 100% financing particularly). If you are in a place where your adjustable rate mortgage (ARM) is going to adjust in a big way and you will not be able to afford the payments, then start doing research so that you can know what your options are. The consensus is that it is much better to do a short sale rather than go into foreclosure, so that is something for you to consider. But even better, see if you can try to keep your house by communicating with your Lender. Sometimes Lenders will rewrite the terms of a loan and give you a fixed rate instead of a nasty adjustable that you may be in now. The foreclosure does not look good on the performance record of the Lender and it may be even more costly for them, so they may be open to rewriting the terms of your loan. Here is the point: If you hear the ticking of an ARM, then research with local agents and online as to how best to approach your Lender. The key is that you know what you need to do, are able to have dialogue regarding your situation, and that you can have effective communication with your Lender. Below are a few links to get the ball rolling for you (they are from a quick google session). The first link is actually a local Realtor with experience communicating with Lenders. If anyone has any great links or stellar Agent contacts for helping current owners effectively talk with Lenders, please comment below.
http://shortsales.thompson-brown.com/index.html
http://www.ehow.com/how_8132_short-sale.html
http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm
http://homebuying.about.com/od/4closureshortsales/qt/060807SellShort.htm
http://homebuying.about.com/od/4closureshortsales/qt/060907SScredit.htm
http://www.inmanwiki.com/Real-Estate/Short_Sales
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