Comments on: What Do You Do When You Face Possible Foreclosure?

By: RB @ RichBy30RetireBy40

RB @ RichBy30RetireBy40 — Wed, 29 Jul 2009 04:03:06 +0000

I’m hoping that whatever people can do, to just hold on and ride it out for the next 5-7 years. Now is obviously not a great time to sell. And if you must, then just let it go and allow your Bank to do a short sale and move on. There will be other opportunities, and don’t let this one get you down.

Best,

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Mon, 27 Jul 2009 12:26:33 +0000

I am with Larry’s camp on this one . . .

By: Single Guy Money

Single Guy Money — Thu, 23 Jul 2009 23:04:54 +0000

I don’t think you should sell. The banks have way too many homes right now and they don’t want your house. I would work with them as much as possible and I’m sure they can possibly work something out for you.

One of the other points brought up by Larry, can you possibly rent out a room or two just to bring in extra income.

By: Miranda

Miranda — Thu, 23 Jul 2009 14:17:53 +0000

I agree with Kristen. Also, check to see if you can get a refinance under Making Home Affordable. The equity allowance was just bumped up to 125%, so you might be able to get help — even if you are underwater. But you do have to have your loan serviced by Fannie or Freddie to take advantage of the program…

By: Kristen

Kristen — Thu, 23 Jul 2009 13:41:34 +0000

Here’s another option: Go see a HUD-certified housing counselor. Many non-profit agencies all across the country offer these services for FREE!! You can find a certified counselor in your area at the HUD web site (www.hud.gov). The counselor will go over the borrower’s whole financial situation, explore all the available options and give the client crisis budgeting tips. These counselors can work directly with lenders. Also, some states have programs to help those who are struggling with their mortgage. For Pennsylvania residents, in particular, the state actually has quite a few programs. These housing counselors will offer honest advice regarding your options.

It’s very important for anyone struggling with their mortgage to be aware that a great deal of scam companies are now out there charging people thousands of dollars up front while promising to help the struggling homeowner modify their mortgage. These companies take the money and then disappear, leaving people in worse shape then they were before. It’s the old adage: If something seems too good to be true, it probably is. If you find a certified counselor, they will give you honest advice.