Whenever you deal with a mortgage you need to remember some very fine points that banks would like you to forget. They act in their best interests, and not in your best interests.
1. Is There Anything You Can Do To Avoid the Potential Issues A Bank Can Force On You With These Changes In Your Loans?
Well yes there are a few things you can do to take care of yourself and ensure things remain in your best interests. If a plan is presented to you by your bank you have a few options. One is researching online and finding out anything you can on whatever they may be trying to switch with your loan. If you are not fond of the internet research idea, you can always find blogs from financial folks who either have a background or at least key interest in it to at least know the questions you should be asking, and if all that fails, seek out a financial professional from either another bank or financial institution and just ask him the questions you have.
Never let someone ever tell you what’s best for you. You need to decide what is in your best interests, but only do so when you are fully informed. Do not go in with one source of information or advice, get several. You don’t need to sound like an expert on the subject, nor do you need to take any courses to be properly informed. You just need to ensure that you are not being taken advantage of and being backed into a corner that you will never get out of.
You want to avoid foreclosure at any and all costs if possible in any way. If foreclosure happens, you will in fact have a very hard time getting loans, financial assistance, and loss of your good name. You can recover from foreclosure but it can and will take a very, very long time.
2. Are There Any Solutions To These Problems?
Yes, instead of foreclosing or accepting one of these ludicrous loan modification offers that will do nothing more than delay the inevitable or even cause the situation to become far worse than it was in the first place. You need to look up the pros and cons of Short Sales and decide if they are right for you, and if you think they have potential, gather the information and take it to your local financial institution, and if they cannot process or offer this service, the internet has a vast resource web, you would easily be able to find someone within your general vicinity that offers it!
How Can A Short Sale Prevent A Foreclosure?
My favorite solution to avoiding a foreclosure is a Short Sale. A short sale is the process where we negotiate with the lender to have them accept a lower payoff amount than the original balance of the loan. Say you have a house that was appraised in the hay days at $300k that is now worth $150K (very common!) and that you have a loan of $270K We will sell the home for $150, negotiate with the lender for them to forgive $120K and to waive deficiency judgment for the forgiven amount!
Only in America, this is possible! A great way to get rid of the debt and to start anew, without staining your credit ratings.
The beauty of the short sale is that, once people choose for a short sale, you are virtually in control over the timing of the process, which means that, depending on the you financial situation, I can keep you in their home for a certain period of time without you paying on the mortgage! In other words, you stay in the house for free and get debt forgiveness and not such a bad credit report – PERFECT Deal right? The longest that I have kept someone in her house without paying is 24 months! That’s what I call The People’s Bailout!