If you have an up-side down loan that is causing you a true hardship, never just walk away!
A foreclosure will follow you long after it is finally removed from your
credit. If you ever apply for a loan, a job, etc. you will see this
question staring you in the face -Have you ever had a foreclosure? If
you say "no" it is fraud.
Applying for a Loan Modification or Short Sale can be
time consuming and stressful. However, by going through the process and
documenting that you tried your best and were still turned down, you can
use this documentation to apply for another home loan later.
demonstrate your willingness to work with the bank can include:
of your home, showing how well you maintained it.
2. List your home for
sale ASAP, preferably before you miss payments.
3. List it with an agent so they can enter it in the MLS for maximum exposure.
4. Price it right - include a comparative market analysis.
that the bank would not participate in
the HAFA Program.
6. If you are turned down for a Loan Mod or a Short Sale, ask for a reason in writing.
You will need an experience realtor who specialists
in Loan Modifications and Short Sales to find a buyer and negotiate with
Loss Mitigation on your behalf.