Recession, bailouts, subprime mortgages. We have lived through a difficult time in America. Many people have started picking themselves up and have been able to find a way through the piles of fees, interest and debt on their backs. Others have not been so fortunate. The economy has started turning around and jobs are on the rise. Unfortunately millions have lost their jobs and their homes during the recession.
No one knows this better than Georgia state residents where the foreclosure rate hit a staggering one in 300 during the height of the recession. With a foreclosure rate like that concentrated in any one area realtors, banks, and politicians have begun looking at how they can contain the hemorrhage before it is too late. Educating homeowners and buyers is one route. Credit counseling is available to those who have simply fallen behind. Grants, extra jobs, and social services are also available. When people are behind and are at risk of losing their homes they will try anything.
Working With Your Bank May Be The Solution
There are ways for a family to avoid foreclosure if their hardships are short term. Calling your mortgage company is the first place to start. The bank does not want your home, it is an inconvenience for them to have to repossess and then sell your home. There are traditional options for avoiding foreclosure which include things like refinancing or loan modification. This will require a discussion with your bank and will include fees. Not everyone will qualify for a traditional refinance or modification, but you may qualify for the Home Affordable Refinance Program (HARP).
Forbearance is an option if your bank will work with you. With this option a bank may temporarily suspend your payments to allow you time to get back on your feet. This is not an exemption of payment; a payment plan will be needed. Some banks will allow you to extend the length of your mortgage to make up for missed payments. Reinstatement and repayment are also options some mortgage companies may allow if you can prove that you will be able to make up missed payments with a lump sum or other large payment repayment at a date in the near future.
A solution for those falling too far behind in their mortgages to use these other options is short selling. This is an option where with the help of a realtor a homeowner can sell their home for a price below the value of the remainder of their mortgage. This option will help the homeowner minimize their losses and get out from under a mortgage payment they cannot afford. With the help of an experienced realtor they homeowner may have options available to them that will actually help them resolve the remainder of their mortgage debt after short selling their home. This is an option that needs to be discussed and researched with your realtor before you become too far behind.
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