Thousands if not millions of Americans have homes that are underwater, meaning they owe more than the house is worth. If refinancing is not an option and if continuing to make the mortgage payment is increasingly difficult to where foreclosure may be a reality, here are some options.
First if your bank is threatening to foreclose visit www.virginiaforeclosureprevention.com. There you will find resources related to foreclosures.
If you are facing a foreclosure and you want to keep your house you generally have two options:
1) Working with your lender to modify your loan.
2) Filing a chapter bankruptcy petition.
If you are facing a foreclosure and you do not want to keep your house you generally have three options:
1) Walk away from the house, which may result in deficiency judgement that could have tax consequences.
2) Sell your house through a short sale
3) Get the lender to accept a deed-in-lieu of foreclosure
4) File a chapter 13 or 7 bankruptcy.
If you’re facing a foreclosure or anticipate getting to that point in the near future, you’re likely dealing with a lot of stress and anxiety. Don’t try to sort out your options on your own. While you may be reluctant to get help because you’re embarrassed don’t let that keep from understanding what your options are. As they say knowledge is power. If you would like to learn more about your options contact me. We’re here to serve you and to help you get back on your feet.
Torus Law, PLC