Options Other Than Foreclosure

Video Transcript

"Hi I'm Miranda Chook, a CPA. If you're listening to this, you're trying to find ways or different options other than foreclosure. Now first off I would recommend that you talk with your lender. The earlier in the process, the better. They may actually allow you to pay late on some of your payments and forgive any penalties or they may allow you to actually skip a few payments and add that to the loan balance. So again, start with your lender they may be able to, they may want to work with you because they're in the business of making loans not of owning property. Now another way to avoid foreclosure is to file for bankruptcy, chapter 13 bankruptcy. However while that will stop foreclosure proceedings, you will still be liable for the mortgage. So that may or may not be optimal for your situation. Another consideration is to think about selling the property yourself. You need to still be working in negotiating with your lender particularly if you might be in a short sale situation and what that means is that the selling price of your home might turn out to be less than the amount that you owe on the mortgage and you need to understand your responsibility for that deficiency. Now if you find yourself in that situation, look for a Realtor that you can trust and has experience in those types of sales because there are Realtors who are more specialized in that now. Listen to what they have to say about showing the home, about a realistic selling price. It may be tough to hear but focus on the short term that you need to get yourself out from under this immediate financial pressure."