Stay away from the predators
Financial crises always bring out the other wolves- those “investors” that would be pleased to take your house off
of your hands for a fraction of its true value. These predators seek out pre-foreclosure scenarios and they will
explain to you how they are really doing you a favor. Don’t fall for it. First, if you sell the home for less than
the mortgage, you are still on the hook for the difference unless your bank agrees with the deal. Second, you will
be offered less than the value that your home will have when the real estate markets recover. If you sell at the
bottom of the real estate cycle, you will miss out on the potential gains down the road if you can fight your way
through this rough patch. You will most likely be offered less than the home is worth right now as the goal of
these “flippers” is to buy the property at a deep discount, put some lipstick on it, and sell it as quickly as
possible. They can’t do that unless they offer you a pittance for the house. If you do consider selling your house
to relieve your mortgage burden, work with a licensed real estate broker who understands the real value of your
home.
Losing a home is a terrifying thought for any homeowner. Not only can it uproot your whole family, it can ruin your
credit for years. Your best bet at staying in your home is to face the problem head-on and work through it with
your lender. The economy will recover, housing pricing will recover, and you will recover too.
Stop Foreclosure