Bill Morris: Underwater? Here's another option ...

Underwater? Here's another option ...

Much has been written and said about how to deal with homeowners in distress -- owing more than they can afford for their homes, and often more than their homes are worth in the current market:

-- Loan modifications have been an active initiative, but few have succeeded. 

-- Short sales remain a viable option in most cases, and major banks and the U.S. government have established a framework of rules and procedures to streamline this historically problematic process. 

-- Negotiating a deed in lieu of foreclosure can be a great solution for those that are running out of alternatives.

-- Default and foreclosure are the finale.

This op-ed piece from RISMedia offers an attractive option that is worth exploring -- equity sharing, true cooperation between lender and borrower:

A Life Preserver for Underwater Homeowners

Ultimately, all of the available alternatives require communication.  Homeowners on the verge of losing their homes are understandably discouraged and humiliated, often angry, and to the point of simply closing off communication.  I completely understand that mortgage servicers can be difficult to approach, and can be nonresponsive -- in part because they have heard a lot of these requests and in part because their loss mitigation departments are often woefully understaffed.  Nonetheless, persistence and a productive approach, and engaging the right real estate professional, can help to salvage a very bad situation.

Bill F. Morris, ABR, CRS, CDPE, e-PRO, MBA
RE/MAX Capital City
Call or Text:       512-785-3345
Toll-Free:           1-800-692-8784, x 162
Email:                 
bmorris@remax.net
Web:                   www.eHomesByMorris.com  

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Comment balloon 1 commentBill Morris • June 02 2010 02:01PM

Comments

This is a good article : ) Thank you for sharing this!

Posted by Tamra Lee Ulmer, FORCE~NRBA ~ Over 1000 REO Assets SOLD! (Arizona Resource Realty) over 9 years ago

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