If you are one of the many American homeowners currently faced with an underwater mortgage, you may be wondering what your options are. Talking to a foreclosure attorney is a good first step, as they will be able to guide you to the best solution for your personal needs. Here are a couple of possible solutions for those facing an underwater mortgage.
Solutions and Pitfalls
Too many people faced with the prospect of an underwater mortgage simply bury their heads in the sand, unwilling or unable to face the realities of their situations. The fact is, as any foreclosure attorney will tell you, banks and mortgage lenders are quite willing to negotiate with those homeowners who are experiencing real difficulties due to financial constraints or the vagaries of the market. Those lenders need to be aware that there is a problem, however, and more importantly they need to be made aware that you, the borrower, are willing to work toward a negotiated solution. Your underwater mortgage is not your fault, and most if not all lenders understand this. Keep the dialogue open and you may be surprised at the results.
A foreclosure attorney is a great resource for discussing alternatives and solutions for your underwater mortgage. Many times a short sale can be a preferable solution for all parties, as neither wants to get into foreclosure proceedings, and a short sale can avoid foreclosure while allowing the bank to recoup a decent portion of its loan. Short sales are another option that only becomes available with good communication. A willingness to communicate, as a foreclosure attorney will tell you, goes a long way in mortgage negotiations for your underwater mortgage.