If a borrower is facing a situation where a house payment cannot be made, face up to the fact, get proactive.The more time that passes the more difficult it will be to make up the payment(s).
Some lenders will restructure a payment plan so the borrower can add to the term of the original loan.This might help buy valuable time, to either let you stay in the home long enough to correct the problem or sell it.
Get a broker (or 2) to give you an assessment of the market value of your home. A CMA also known as a “Comparative Market Analysis” along with a “net sheet” of projected costs will help to determine your chances of selling your home.
Some lenders have the ability to accept a “short payoff”. This means if you are able to find a buyer for your home, at a fair market value, the lender may accept less than is owed to them. Keep in mind, if you are granted a “short payoff” this amount will become taxable income. It may work out to be not such a good thing.
When a mortgage loan goes into default, time becomes a valuable commodity; every minute wasted is one that is clicking closer to foreclosure.
Don’t stick your head in the sand. Educate yourself on your options and act.
About the Author
Kristal Kraft
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog
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