What to Do Before Foreclosing on Or Short Selling Your Underwater Mortgage

If you have decided to foreclose on your underwatergovernment official, or any blow-hard pundit tell you
mortgage, congratulations! We know what a hard stepotherwise!
this is to take, and we admire your courage in puttingWith everyone from the government to pundits telling
yourself and your family first.us we should hold ourselves to different, higher
With everyone from the government to pundits tellingstandards than the banks and lenders do, it can be
us we should hold ourselves to different, higherreally hard to see the trees for the forest, can't it?
standards than the banks and lenders do, it can beBut you've made the decision, and in at most a few
really hard to see the trees for the forest, can't it?years, you won't even have a concern about your
But you've made the decision, and in at most a fewunderwater mortgage anymore. However, you need
years, you won't even have a concern about yourto do things correctly to prepare yourself for your
underwater mortgage anymore. However, you needforeclosure and for life after this mortgage.
to do things correctly to prepare yourself for yourFirst-before you miss a payment do a financial
foreclosure and for life after this mortgage.assessment. Are you going to need a new car in the
First-before you miss a payment do a financialnext 5 years? If you buy it now, you'll save yourself a
assessment. Are you going to need a new car in thelot of money in higher interest payments later. Also, do
next 5 years? If you buy it now, you'll save yourself awhat you need to do to make sure you'll be able to
lot of money in higher interest payments later. Also, dostay on time with all of your other bills after you stop
what you need to do to make sure you'll be able topaying your mortgage.
stay on time with all of your other bills after you stopThis will make it easier for you to get credit after your
paying your mortgage.mortgage is foreclosed on, or you short sell your
This will make it easier for you to get credit after yourhome.
mortgage is foreclosed on, or you short sell yourNext, we'd like you to consider taking the lead in this
home.process and doing everything you can to arrange a
Next, we'd like you to consider taking the lead in thisgood short sale for yourself. Hire a sharp Realtor who
process and doing everything you can to arrange aknows the short-sale process inside and out to
good short sale for yourself. Hire a sharp Realtor whonegotiate with your lender and to list your house for
knows the short-sale process inside and out toyou.
negotiate with your lender and to list your house forNow, whatever you do, don't trust your lender's word!
you.Make sure you get the agreement to accept a short
Now, whatever you do, don't trust your lender's word!sale from your lender in writing. This is where your
Make sure you get the agreement to accept a shortRealtor is really going to be helpful. Remember that
sale from your lender in writing. This is where yourthese are financial institutions you're dealing with-and
Realtor is really going to be helpful. Remember thatwe all know we can't trust a single one of them,
these are financial institutions you're dealing with-andespecially the large national banks.
we all know we can't trust a single one of them,Regardless of what your lender says, have your
especially the large national banks.Realtor research what your house is actually worth
Regardless of what your lender says, have yourand then list it with them for the short sale. Your
Realtor research what your house is actually worthmortgage lender will just sell it for pennies on the
and then list it with them for the short sale. Yourdollar-if they do that, they may have an actual
mortgage lender will just sell it for pennies on theincentive to come after you later. By taking the reins in
dollar-if they do that, they may have an actualthe short-sale process, you get to protect yourself.
incentive to come after you later. By taking the reins inAnd whatever you do, don't let your lender pick the
the short-sale process, you get to protect yourself.Realtor you use!
And whatever you do, don't let your lender pick theDon't fret over finding the right Realtor either. Feel free
Realtor you use!to contact us and we'll help you find an educated,
Don't fret over finding the right Realtor either. Feel freecertified short sale Realtor in your area.
to contact us and we'll help you find an educated,In addition, short sales are not short. Given the housing
certified short sale Realtor in your area.market, putting your house up for short sale just gives
In addition, short sales are not short. Given the housingyou more time to live in your house without making
market, putting your house up for short sale just givespayments so you can start planning for your future.
you more time to live in your house without makingYou may also want to apply for a mortgage
payments so you can start planning for your future.modification, instead of listing your home as a short
You may also want to apply for a mortgagesale. Now, two out of the three available modifications
modification, instead of listing your home as a shortwill actually cost you more money in the long run, and
sale. Now, two out of the three available modificationsone of them is only going to help you if you're not in an
will actually cost you more money in the long run, andadjustable-rate mortgage (ARM). Oh-and less than 3%
one of them is only going to help you if you're not in anof families are approved for them. But when you apply
adjustable-rate mortgage (ARM). Oh-and less than 3%for a modification, everything stops until you get an
of families are approved for them. But when you applyanswer from the bank that you are either approved or
for a modification, everything stops until you get annot for your loan modification. This gives you even
answer from the bank that you are either approved ormore time in your house, mortgage-payment free!
not for your loan modification. This gives you evenBut here's the most important thing we can tell you
more time in your house, mortgage-payment free!about dealing with your underwater
But here's the most important thing we can tell youmortgage-remember that your family is more
about dealing with your underwaterimportant than your house and all of your possessions
mortgage-remember that your family is morecombined. Don't let any mortgage lender, any
important than your house and all of your possessionsgovernment official, or any blow-hard pundit tell you
combined. Don't let any mortgage lender, anyotherwise!