If you need help, you are not alone
If you’re having trouble paying your mortgage, you’re not alone. Authorities project that more than 2 million households will default this year. One in 18 homeowners is behind on their mortgage payments. That’s bad news.
help is available
The good news is that many real estate professionals, as well as the government and banking and credit institutions, are very interested in helping you save your home. On average, foreclosure on a home reduces the value of the surrounding property by $17,000 to $18,000, within a five mile radius of the property. Every home saved means fewer vacant homes, supporting higher property values, a stronger community and an improved local economy.
Real estate and finance professionals can help
Many financial and real estate professionals realize that some in their communities are going through tough times and it’s affecting their ability to make their mortgage payments, avoid foreclosures and save their homes. Saved homes mean stronger communities that are in greater need of your services.
The United States government wants to help
The housing market is an important sector of the economy and the government wants to reduce foreclosure rates and increase property values to strengthen the economy. The government has helped by devising new loan programs that make it a little easier for homeowners to refinance a loan with better interest rates, which translates into lower mortgage payments. Nevertheless, Not all mortgage brokers keep track of these programs. It is important to work with a broker who specializes in this area because they can stay up to date on these new developments.
Banking and credit institutions can help
Banking institutions are often willing to negotiate with homeowners who are behind on their payments, or whose interest rates are being adjusted to the point that they will no longer be able to make their payments. Banks would often prefer to have an owner pay on modified terms, rather than end up with a vacant house on their books that they have to pay to fix up and sell.
Use a team of experts to get the best results
Of course, you can talk to your lender and try to work out a settlement on your own. However, there are professionals who have become experts in these types of negotiations and know exactly how to best present your case to your lender for the best possible loan reinstatement or interest rate reduction terms. The end result of a successful negotiation may be a lower mortgage rate, but there is no guarantee. Timing and strategy are important. This is where having a professional in this area is the key.
Likewise, you could try to learn about the latest loan programs and decide which one is best for you, but working with the right mortgage broker will save you from having to “reinvent the wheel,” as the saying goes.
Seniors have a special advantage
Older adults are a special case. If you’re a senior, it’s possible to eliminate your mortgage payments entirely with a mortgage product that actually pays you every month, instead of you paying a mortgage. It’s called a reverse mortgage. It’s not for everyone, but it may be exactly what you need to stay comfortable during your retirement years. Even if you’ve applied for a reverse mortgage in the past and been denied, there are new loan products in development that may better suit your situation.
Action plan to reduce your mortgage and save your home
Now is the time to empower yourself by taking constructive action.
If you’re a homeowner and say, “I need to lower my mortgage payments or I won’t be able to avoid foreclosure.” This is what I suggest you do next. Take the 8 steps below that spell:
MORTGAGES
M – MOVE IT!: – Be sure to take action as soon as possible. The faster you act, the more options you have
OR – ORGANIZE YOUR DOCUMENTS: Have you been letting those scary letters pile up in the corner? Make sure you’ve organized all your related files and documents so you can get what you need in your hands quickly. This also increases your sense of control over your situation.
A – RECRUIT YOUR TEAM: Look for an experienced team of financial and real estate professionals working together in your best interest. Start by asking your friends and family for recommendations and search offline and online. Remember that in the financial world you are not limited geographically. Your best team members may be hundreds of miles away. Keep searching until you are sure you have the correct group. Good advisers often work together. Sometimes the key is finding a team member who you know is right for you and who can guide you to others.
T – TAKE ADVANTAGE OF ALL RESOURCES: Keep an open mind. Work with your team to explore all of your options for you and your family. The solution may or may not be simple. Be sure to clearly communicate the issues that are most important to you. Great idea. Ask questions. You will often find that the best strategy will be presented and confirmed as you go through this process.
G – GAIN OF FAMILY CONSENSUS: Discuss the options with everyone interested in and affected by your decision. (ok, maybe not the dog, but everyone else). Talking it out will help take some of the stress away and provide needed support when everyone is on the same page. It’s amazing how much more you can accomplish when you have the full cooperation of the most important people in your life.
A-ACT: Take a deep breath, act and make your best choice. Don’t give in to analysis paralysis. At a certain point, you have to pull the trigger and make a decision.
G – GIVE YOURSELF A BREAK: Be easy on yourself, knowing that you’ve done all you can for yourself and your family. Guilt, anger, and frustration only drain your creative energy to solve problems.
E- HOPE TO SHARE YOUR KNOWLEDGE: When you are ready, pass on the knowledge you have gained to others worthy of your wisdom. Remember when you were in the team recruiting stage and you were asking for recommendations? Now it’s your turn to ‘pay if you forward’ and share your experience for the benefit of others. Word of mouth travels. You can be the reason someone else can save their home by lowering their mortgage payments!
So there you have it. If you succeed:
METERcaring,
EITHERorganize all your documents,
Rwrite your dream team,
Ttake advantage of his wisdom,
GRAMWith the consent and support of your family, take
HASaction,
GRAMtake a serious break, and
meHope to share your knowledge with someone else who needs help,…
You’ll be amazed at how easily you can find a workable solution… with a little help from your friends!
I hope you have gained some useful knowledge. May you and your loved ones have all the best for your future!