You did it! You bought a house. Originally you wanted to stay within a budget, but the houses in the price range you could afford were not quite what you had in mind, so you went ahead with a purchase of the maximum amount that you were approved for. At first it wasn’t so bad, but as time went on you fell more behind and realized that you would have to make a decision about what you were going to do. Not even 12 months later you are having trouble keeping up. What should you do?
Here are some basic tips on what to do if you don’t think you will be able to get past this stressful situation. These tips are from a foreclosure specialist in Eugene, Oregon.
1) Do whatever you can to make those payments. Pay your mortgage before you pay your car, or credit cards. Remember you have to live somewhere.
2) Answer the phone calls. There is a real person on the other end. It is not personal, and they deal with your situation all day long. The bottom line is they just want the money that you promised to pay, that day you signed your name at the closing table at the escrow office.
3) If you just cannot keep up, the best thing to do is put your house on the market. Call a real estate broker and get a price opinion. It may not be the price that you want, but it may be the price you need to get out of this situation.
4) Put your house on the market. What do you have to lose? It would be better for you to put it on the market with a real estate broker and get every broker in your area working to sell your place than to have the stress of putting a sign out front and having to deal with a picky buyer who wants your kitchen curtains too. Studies from the RMLS say that using a broker will get you a higher price too. That will help when it comes to covering those late, and attorney’s fees.
5) Move on. You are not your financial situation. If you are able to sell it before it goes to the auction block it will show as a settlement. That means that you did the responsible thing and got the mortgage company their money. As opposed to default, this means that you did nothing. Chances are you might need credit in the future, so do the right thing for the mortgage company and yourself, you won’t regret it.