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Home Renters Beware: The Foreclosure Crisis Affects You as WellAugust 11, 2008
Home foreclosures have created an overlooked victim: what happens when the home you rent goes into foreclosure? The vicious circle of declining home values and rising foreclosures.
July 11, 2008
Home values drop when foreclosures rise creating a vicious circle. Is there help in sight or a way to take advantage of a declining market? Home Selling Success: What You Need to Know
July 11, 2008
Yes, the home selling market has slowed in the past year; however, houses are still being purchased on a daily basis. What is the secret to successful home selling? Home Value Plays Role in Foreclosure Alternatives
By Karen LawsonHome Worth Columnist
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If can't make your mortgage payments and property values have declined in your area, you may owe more on your mortgage than your home is worth. You can get an estimate of home value using a free home value calculator online, or you can contact a local real estate professional for specific information about home value and market trends in your area.
Upside Down Home Value Can Encourage Lender Cooperation
If you've missed mortgage payments due to circumstances such as unemployment, or illness, and cannot make payments, don't give up. If your home value is less than your mortgage amount, your lender may approve a preforeclosure sale. You can list your home for sale at market value regardless of how much you owe on your mortgage. Home value is a key factor in getting your lender to approve a preforeclosure sale, but there are other considerations:
- Your ability to contribute toward the shortfall: Your lender doesn't want to foreclose on your home, but they also want to reduce losses to the extent possible. If your lender agrees to take a loss based on a market value sale of your home, they may ask for a cash contribution to reduce their loss.
- If you have mortgage insurance (MI), the MI company must also approve a sale. Your mortgage company will file a claim with the MI company to recoup all or part of its losses, and will also want to approve preforeclosure sale offers.
- Your lender verifies current home value: Be prepared to cooperate with real estate agents or an appraiser sent by your lender to confirm current home value. Your lender's acceptance of a preforeclosure sale depends on receiving an offer at or near current value.
About the Author
Karen Lawson is a freelance writer with extensive experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno.