Few people have to be told that home ownership is no longer an easy ride to financial well-being. The news headlines are filled with gloomy reports of falling home prices and rise in home foreclosures.
Think you won't be affected by foreclosure? That's probably what THIS man thought.
It's hard to imagine yourself needing to get out from under debt so large that your home ownership could be in jeopardy. Yet, it's not that uncommon, as evidenced by the video of Ed McMahon.
What causes the problem? Sometimes it's a mortgage that was beyond the owners ability to pay from the beginning - and, if you've got an interest-only loan, that may well be your situation.
Sometimes it's unexpected financial reverses due to change in life circumstances - unemployment, health issues, or divorce. I know - after an auto accident this spring, I found that I was personally liable for all the bills; eventually, the insurance company will make a settlement, but, in the meantime, I'm having to pay out of pocket.
In some overheated home markets, the housing boom - just exploded, leaving many homeowners holding mortgages greater than the value of their homes.
Adjustable-rate mortgages have, in many cases, risen. The US is currently experiencing both economic turndown AND inflation, which both reduce jobs, and raise the interest rates.
Whatever the reason for your problem, right now, you may be facing the real possibility of losing your home. It's hard to think clearly when you are so overwhelmed.
The best situation would be to avoid the problem entirely. Yet, many find themselves in unanticipated crisis, and facing the possibility of Foreclosures.
What can you do?
Well, don't just hand the bank the keys and walk away. You may be liable for te difference between what you owe, and what the bank can sell it for. In a declining market, this can be a substantial sum, and can prevent you from qualifying for another home for a LONG time.
There are services that will work with you to find the best solution for you, including restructuring the loan, getting the payments reduced, or selling the home. To find the best way to Stop Foreclosure, you will want to check out these Loan Modification specialists.
One such service is Ocean View Equity, which specializes in helping homeowners to resolve their financial problems. Do they charge? The initial consultation is free. If they are unable to help you, they will refund any money paid under their guarantee. Ocean View Equity has posted a list of commonly asked questions.