What are my options as a home seller when my property is in or heading toward default?
In the event that you have been delinquent in paying your mortgage or anticipate that you will not be able to make payments moving forward, your options will vary, based upon several factors that are specific to you and your property.Always remember that each possible resolution will be evaluated on a case-by-case basis by all parties involved. When considering your options, you should take into account:
• the amount of equity you have in your property compared to the outstanding loan balance
• the additional financial resources you may be able to bring to bear
• whether or not you live in a homestead state, and the nature and amount of the homestead exemption
• and/or the amount of private mortgage insurance you have
All of these factors should be taken into account, along with other variables and special conditions. The most important decision you need to make is to “make a decision.” Typically, when homeowners avoid confronting the serious lifestyle and financial consequences of defaulting on their mortgage, they end up with a significantly more deleterious outcome than they would have, had they taken charge of their own destiny early on in the process, while they still could. Once you decide to take action, we recommend that you contact a lawyer and a real estate agent qualified to assist with your special needs. Good real estate agents are not just committed to helping you pursue the potential option of a short sale, but to encouraging you to fully consider all other options that may be available.
Early on in the potential foreclosure process, all homeowners should not only contact an attorney, but also research all potential guidance and assistance available from the government, including the U.S. Department of Housing and Urban Development (HUD). HUD’s Guide to Avoiding Foreclosure may be particularly helpful. HUD’s toll-free telephone number is (800) 569-4287. Not all homeowners, however, can qualify for HUD programs.
Gail Lilley Zawacki, Realtor
Coldwell Banker Real Estate
472 Riverside Avenue
Westport, CT 06880
203-856-9949
Gail@SouthernCT.com
