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Fight a Foreclosure - Or Walk Away? |
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When should you fight to Avoid Foreclosure.....or just Walk Away. In a real estate environment were some Americans owe more on their mortgages than their home is worth. |
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| Author: Patrice |
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But wait...don't just move out of the home without a strategy:
1) You should either contact the lender about a deed in lieu of foreclosure. A deed in lieu of foreclosure is when the borrower agrees to voluntarily transfer title of the property to the lender in exchange for cancellation of your mortgage debt, OR,
2) Stay in the home, until after the foreclosure proceedings. The benefit in this strategy is that you stop paying the mortgage and save that money for your after-foreclosure life, after the lender or new buyer evicts. However, its really important that you keep your home insurance current. If your house burns down, before the conclusion of the foreclosure proceedings, homeowners without insurance becomes liable for the full amount of the loan amount.
An example of a Walk Away is:
Jane and Joe bought a new home in a great neighborhood. Their mortgage was $2,000 a month. To pay for their son's education, they also financed a 2nd mortgage on their home, with a payment of $890 a month. When Jane's firm when out of business, Jane and Joe were no longer to pay their mortgage. In addition, the identical home next door was now selling for $190,000 less than the payoff of the mortgage. Although, Jane and Joe had $5,000 in savings they decided to stay in the home, until after it foreclosed and they were evicted. And then rent a nice apartment in the area for only 950 a month.
About Author
K. Patrice Williams has a BA in Economics as well as a law degree. She has successfully managed both residential and commercial multi-million dollar income producing assets and budgets for more than 10 years. As a 1st year law student, Patrice established a real estate development and consulting business and acquired over 30 rental properties. As the housing market values decreased- like millions of other Americans-her properties were negatively impacted by shifting ARM's, combined by a sluggish economy. Patrice has researched and personally implemented almost all of the pre-foreclosure techniques detailed in the book: "6 Simple Steps to Avoid Foreclosure". http://www.avoidforeclosuremanual.com
Article Source:
http://www.1888articles.com/author-patrice-12184.html
