Three Possible Solutions: Mortgage Foreclosure, Refinance Mortgage, or Short Sale
Southern California is seeing more homeowners facing foreclosure in these uncertain financial times. Truth is many of us cannot make our mortgage payments.
The challenge for most of us is readjustment of the 100% Adjustable Rate Mortgages we took out to buy our homes in the last few years.
For many of us, out payments have adjusted up and the value of our homes has gone down.
So now what. Yes, we have tried to refinance and are on our 5th lender. The challenge is loan to value of the home. A friend of mine says that there are 7 or 8 empty houses on his street alone where people just walked away. His house, just 2 or 3 years old, is valued at $100,000 less than what is owing on an adjustable rate mortgage, now up to over 11% interest rate and soon to adjust again.
The impact on careers is phenomenal. The mortgage industry has experienced major layoffs, with some mortgage companies going under. Some of the mortgage brokers we dealt with are no longer with the lender they worked for.
The only thing saving our building trade industry is the construction jobs after the wild fires we experienced in San Diego.
So back to the mortgage strategy challenge. What option do we choose -- Mortgage Foreclosure, Refinance Mortgage, or Short Sale.
Onward with purpose,
Chaplain Paul Slater
The challenge for most of us is readjustment of the 100% Adjustable Rate Mortgages we took out to buy our homes in the last few years.
For many of us, out payments have adjusted up and the value of our homes has gone down.
So now what. Yes, we have tried to refinance and are on our 5th lender. The challenge is loan to value of the home. A friend of mine says that there are 7 or 8 empty houses on his street alone where people just walked away. His house, just 2 or 3 years old, is valued at $100,000 less than what is owing on an adjustable rate mortgage, now up to over 11% interest rate and soon to adjust again.
The impact on careers is phenomenal. The mortgage industry has experienced major layoffs, with some mortgage companies going under. Some of the mortgage brokers we dealt with are no longer with the lender they worked for.
The only thing saving our building trade industry is the construction jobs after the wild fires we experienced in San Diego.
So back to the mortgage strategy challenge. What option do we choose -- Mortgage Foreclosure, Refinance Mortgage, or Short Sale.
Onward with purpose,
Chaplain Paul Slater
