Why do homeowners insist on hanging on to their homes when they are hundreds of thousands of dollars upside down in their equity? I have met with thousands of homeowners during my career. In the past two years most of the homeowners I have spoke to are desperately fighting to save their homes from foreclosure. I ask important questions right away: (a) how long have you owned your home? (b) How much of your own money have you put into this home? (c) Ideally how long would you like to live in this home? (d) How much of a factor is the area and schools in regards to your children (if applicable)? (e) How much of a monthly payment can you afford? And many more questions that are relevant to what the homeowner deems important factors.
I find that most times if a client is trying to hang on to a home that is $100,000+ negative equity they are “emotionally attached” to their home. It is human nature that when someone is trying to take something away from us we try to hang on even tighter and lose all reasoning and perspective. I listen, take notes and give clients valid options based on actual experience of past and current clients.
There are many valid reasons why negative equity is not an issue for homeowners and obtaining an affordable monthly payment is the only and/or main factor: (a) A homeowner has to live somewhere, if they lose their home they will have to pay rent (b) Many times a modification can obtain payments as low if not lower than current market rent (c) As a homeowner you have interest you can write off on your tax returns, as a renter there is very little tax advantage (d) Because of credit history and/or income levels homeowners might have a difficulty ever buying a home again or in any type of near future (e) The embarrassment of losing their home (neighbors, family, friends, co-workers, etc) (f) And possibly one of the most important reasons is uprooting their children from the home, school and neighborhood.
Go for the Loan Modification first, allow 3-12 months and hopefully you will get what you are looking for. There are choices out there, but you have to obtain experience and professional assistance of a Loan Modification Lawyer.
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Foreclosure Defense Lawyer Bay Area, Loan Modification Law Firm, Home Loan Modification Attorney Fremont, Bankruptcy Law Firm and Mortgage Modify Help Services to avoid Foreclosure