My mom and dad thought it would be real cute to put me in the water with them the other day. First off, I'm not a swimmer. I like to stay looking cute at all times. Secondly, swimming means a bath....ugh! They know I love boating but keep me at least 10 feet away from the water! Oh the stress.......
I'm sure the stress of me treading water is similar to those people facing foreclosure on their home. Okay, treading water may not be anywhere near as stressful but you have to remember I'm a DOG!!!
I thought I'd offer up some advice for those people who are nearing the big 'F' word.
Some homeowners who are three months to a year behind on their mortgages have chosen to leave their homes altogether. Anyone can walk away from a house — even a retired baseball great, Jose Canseco, who abandoned his Encino (Calif.) property earlier this year.
But attractive as "just walking away" may seem to a homeowner at the end of his or her financial tether, leaving a property to the mortgage-holder or other interested parties carries a serious credit risk and significant legal responsibility.
But attractive as "just walking away" may seem to a homeowner at the end of his or her financial tether, leaving a property to the mortgage-holder or other interested parties carries a serious credit risk and significant legal responsibility.
It's a good idea to call the person you may least want to talk to: The lender. Cash-strapped homeowners can get forbearance from their lender if they act early. This agreement reduces or suspends the mortgage payment for a limited time, giving homeowners a temporary reprieve.
A forbearance is not the same as loan forgiveness. Ultimately the mortgage payments have to be reinstated, and anywhere from three to six months of missed payments have to be accounted for. The very lucky — and reasonably well-off — can pay off the amount accumulated during forbearance in one lump sum. But for those who still find themselves in short-term financial trouble, most lenders offer specialized payment plans in which the borrower agrees to add a portion of the missed payments to the mortgage until the account is current.
Speaking directly to a lender seems logical enough. But surprisingly, homeowners who struggle and fail to meet their mortgage payments month after month rarely contact their lenders. And the further they fall behind, the less likely they are to reach out for help.
A forbearance is not the same as loan forgiveness. Ultimately the mortgage payments have to be reinstated, and anywhere from three to six months of missed payments have to be accounted for. The very lucky — and reasonably well-off — can pay off the amount accumulated during forbearance in one lump sum. But for those who still find themselves in short-term financial trouble, most lenders offer specialized payment plans in which the borrower agrees to add a portion of the missed payments to the mortgage until the account is current.
Speaking directly to a lender seems logical enough. But surprisingly, homeowners who struggle and fail to meet their mortgage payments month after month rarely contact their lenders. And the further they fall behind, the less likely they are to reach out for help.
Walking away from a mortgage severely damages your credit and is not a good solution. If you're in trouble, TALK TO YOUR LENDER!
There are other ways to solve things and prevent ruining your financial future as opposed to walking away from your mortgage. Talk to my mom. She'll help you in any way she can with ideas and suggestions you can try.
There are other ways to solve things and prevent ruining your financial future as opposed to walking away from your mortgage. Talk to my mom. She'll help you in any way she can with ideas and suggestions you can try.
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