What are the options in preventing or postponing a foreclosure?
Question:
Answer:
Are your financial issues temporary, or is this going to be an on-going problem? If they are temporary and you are already behind on your payments you can usually contact your mortgage company and work out options. One option is a payment plan that gets you back on track. Another is postponing payments for a few months while you get back on your feet. Sometimes they will renegotiate your loan and lower your interest so you can afford your payments.
If you have equity in your home they are going to be less likely to work with you. If they foreclose they can sell your house for market value and keep all your equity. If you're in this boat and don't see getting back on your feet you should sell immediately. If you sell you can get out any remaining equity and move on without a foreclosure on your credit.
If you have no equity and are still interested in selling the mortgage company will sometimes agree to a "short pay" in which you sell the house for less than what you owe. This has to be approved in advance and your realtor negotiates it. Any amount of money that the house is sold for less than what you owe is considered capital gains in the eyes of the state and you will be subject to capital gains tax on the "proceeds".
With out know your situation it is hard to give you any advice, there are a number of different options.
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Good Luck
Mark
The honest answer, is money. No matter what you read, there really isn't any help for people in that situation. It all boils down to pay-up or foreclose. You can postpone by filing an intent to cure. Which really just increases the costs to not foreclose. Sorry. Good luck
Check with a HUD office in your area. They are on-line to help you find a solution or a HUD approve non-profit counselor. Don't wait.
Not that many options to prevent or postpone except to talk with your lender about your financial situation. Keep in mind that they just want to get paid, so if you cannot do that, you should tell them as that will open other alternative options to you (ie. short sale, give property back to lender)
Hope this helps...
Check out TaxSaleWealth
http://www.taxsalewealth.com
contact the National Foreclosure Hotline.they have been directed to try and assist people in your situation.
1-888-995-4673 (this number was broadcast by CNN & CBS last week)
good luck ☺
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