How to get Yourself Back on Track After Mortgage Delinquency

A delinquency isn’t something you intentionally brought upon yourself, in most cases, and your willingness to correct the problem will be a benefit for your moving forward. Remain flexible to different terms, and be prepared to do plenty of research about your state’s laws and the process itself.

Remember, the bank doesn’t want to foreclose on you. During the height of the crash, banks were backlogged on properties to foreclose on, and for good reason. Foreclosure costs them money, and it hurts consumers in the long-term. Don’t give up on your dreams, there are ways to get yourself back on track if you’ve lost your way.

Consider a Loan Mod

One of the biggest benefits you have is a loan mod. If you can verify that you’ve lost income, while your spouse or partner has been able to earn “continuous income,” you may be eligible. Of course, these requirements are vastly oversimplified so it’s important to review what the federal government has to say about loan modifications.

The benefit to you is adjusted loan terms that help you get yourself back on track. The disadvantages are a longer loan term and adjusted interest rates.

Short Sale

The bank may agree to a short sale, but they do set the price of the home and that price is typically non-negotiable. Short sales almost always close with an all-cash investor, although it’s not unheard of to do a short sale where the buyer is a first-time home buyer. It is a difficult process, but it does provide some hope to those who are seeking a way out.

Conclusions

Research your state laws and create an open dialogue with your lender. Try to remain polite, and document every interaction you have regarding your delinquencies. Be prepared for a struggle, but the dream of keeping your home is worth it.

:: Kuba Jewgieniew is the CEO of Realty ONE Group, and the founder of Realty ONE Group Cares. Through local charity work, the agents of Realty ONE Group are working toward better communities and brighter futures.

Credit card debt you may never want to carry

Recent financial news indicates that more and more Americans are paying down their credit card debt and stay away from new charges. If you are one of them pat yourself on the back. Credit card debt is one of many debts that one should try to avoid at any cost.

• They carry a higher interest rate. Depending on your financial health, they can carry a hefty interest rate as much as 30 percent. If not paid off the balance at the end of the month, credit card debt can spiral into stratosphere. Think about your credit card debt this way; if you paid off the balance and avoid paying interest, it is 30 percent that you earn on your money.
• Credit cards could lead you to develop irrational financial behavior. Irresponsible behavior on your part leads to accumulating debt and financial cost could lead you to stay trapped for months or years.

How to get out of the vicious cycle is a problem for many. There are many ways to handle the issue. You can get help from debt counselor or discipline yourself to pay down credit card debt promptly. There are other online services that are rapidly becoming popular for helping people with overburdening debt.