Don't jump ship because your mortgage is underwater

Drive down any city block and you will see multiple vacant homes. Many are the result of foreclosures.

The owner could not pay the mortgage so the bank took the property back. Others have been completely abandoned. It is never the owners first choice to leave there home. A home that they have worked so hard to obtain and maintain.

 A home unlike so many other purchases we make is one that we expect to get a return on. We are okay with paying a little upfront because we know in a few years our home will be our road to financial stability. Owning a home use to mean you had leverage. You could borrow against your equity to start a business, send a child through college or enhance the quality of your life on your terms.

In recent years we have watched helplessly as our biggest asset has diminished in value. Due to the economy many homeowners are suffering job loss and are unable to pay there mortgages. The first sign of trouble is when a homeowner should contact there mortgage company. However, many homeowners wait until they are completely out of options before they call.

They try and sale the home above market price which is usually what they owe on the home. They reduce the price again and again until there only option to sale is by performing a short sale. They work through numerous short sales. Giving up every tidbit of information the bank request only to secure an offer that the bank rejects. Hence the reason for abandonment.

Once the homeowner has tried unsuccessfully everything in there power to save or sell the home it begins to be overwhelming. They have tried to work it out themselves they have reached out for help through short sales now what? Refinancing is out of the question because they owe more than the home is worth. Many homeowners pack there possessions and say "Let the bank do what they will with it". "I am done!"

Abandoning the home no matter how bleak the circumstances should never be an option.

Call your bank and ask about these programs

THE HARP PROGRAM-(Home Affordable Refinancing Program)This program allows qualified borrowers to refinance a loan that is from 105 percent to as high as 125 percent of a home's value.

requirements-

Your home cannot be in foreclosure.

You may not have made any late payments in the past 12 months

It must be a Fannie Mae or Freddie Mac loan

Your eligibility is also subject to your credit score, current lender guidelines & how your loan structure is currently

With the Harp Program to be eligible you must be proactive. At the first sign of trouble you must give your lender a call.

THE HAMP PROGRAM-(HOME AFFORDABLE MODIFICATION PROGRAM)

This is for homeowners that are underwater and have delinquent payments

requirements*

The mortgage must be owned by Fannie Mae or Freddie Mac or by others signed with the U.S Treasury

You must be in danger of foreclosure'

The government provides incentives for the lender to do these troubled loans. However they are not required to do them. It is at there own discretion to reject or accept these loans.

To find out more about these loans go to the making home affordable website at

www.makinghomeaffordable.gov/

Remember every solution may not be an easy one to find but giving up closes the door to finding one.

If you have any questions or need assistance contact me I am here to help