Many Virginia Beach home owners are having difficulty paying for their homes. The number of foreclosures rises each month and it looks like things will get worse before they get better.
Most Virginia Beach home owners who are behind on mortgage payments aren’t as lucky as Ed McMahon, the longtime sidekick of comedian Johnny Carson. Mr. McMahon has been battling off foreclosure for months after defaulting on a $4.8 million mortgage from Countrywide Financial Corp. Then along comes Donald Trump to save the day! Mr. Trump told the Los Angeles Times he will buy McMahon’s six-bedroom home in Beverly Hills and allow McMahon to live in it.
A Trump bailout is great news for Ed McMahon, but what about Virginia Beach home owners who are struggling with mortgage payments? How do we avoid foreclosure? Here are HUDs Top 10 tips to Avoid Foreclosure:
If you have you received a notice from your lender asking you to contact them?
If you are unable to make your mortgage payment:
1. Don’t ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you have a problem.
Lenders do not want your house. They have options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
4. Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can’t make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
5. Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL .
6. Contact a HUD-approved housing counselor.
The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.
7. Prioritize your spending.
After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.
8. Use your assets.
Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
9. Avoid foreclosure prevention companies.
You don’t need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.
10. Don’t lose your house to foreclosure recovery scams!
If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.
Another suggestion is too speak with a respected and reputable Realtor. A Realtor can review your individual situation, look at what the real estate market is doing in your neighborhood, provide facts and figures as to whether or not it is feasible to sell your home, advise to you other alternatives, such as a short sale.
If you are behind on your mortgage payments on your Virginia Beach home and would like to review your options with a Realtor, give us a call at866-222-0158 #550. We’re glad to help anyway we can.
Learn the current market value of your Virginia Beach home.
Homearama 2008 is located in Virginia Beach’s Ashville Park neighborhood and scheduled to run October 3 – October 19. This year’s showcase features seven homes compared to 17 homes last year in Chesapeake’s Edinburgh Meadows. Six of last year’s 17 homes are still for sale. The prices won’t be any smaller, however with homes ranging from $1.1 million to $1.6 million.
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