Call your bank and as for the loss mitigation department. Explain your circumstances and be prepared to provide supporting income/expense documentation. Call a local Realtor with Short Sale knowledge to help you with the pricing analysis of your home. The sooner you speak to someone, the sooner you will have an understanding of the implications and the better you can choose your course of action. I agree with the earlier post......sooner is better than later!
The lender will be reimbursed for losses suffered because you have mortgage insurance on your loan. The lender will try to get a fair market value for the home based on it's current condition, but that value will be based on an appraisal in the event of a foreclosure or "short-sale." Obviously, what you, I and the lender thinks the home should sell for would be vastly different, especially in light of the fact that the lender can't lose.
Since you're now behind on your mortgage, you should immediately look at your options. Foreclosure? Short-Sale? Bankruptcy? Retail sale? Investor purchase? It's hard to say what your best option is at this point because there are too many unknown variables in your posting, but I would definitely communicate with your lender ASAP and let them know you're working on a plan. Communication is key. Keep all letters you receive from the lender as well.
As both a real estate broker and investor, I would be happy to discuss a possible purchase of your home, but I would need more info. If you wish to discuss this, feel free to call me at 512-507-5864 or email me at inf@FastCash4AustinHomes.com.
Best of luck.
Broker / Investor
Please know that you are not alone out there. First, communicate with your bank. It really can make a difference sometimes, depending on the Lender, as to how they will work with you.
You may want to consider putting you home on the market. Yes, the issues with the house will effect the selling price. The lender needs to know these issues as well. Depending on the how the home shows, it is possible to sell the home for less than you owe, called a Short Sale, and you get out of the home. Foreclosure is a long process and takes a several months. And, the Lender will only be able to sell the home for whatever they can get if they foreclose. This is usually considerably less than what is owed.... hence, they may consider working with you in trying to sell the home. Your lender is going to end up doing whatever they think will cost them the less amount in the long run... loss due to foreclosure or loss due to a short sale.
Do not just pack-up and leave. AND DONT TAKE THINGS FROM THE HOME THAT WILL BE NEEDED TO SELL THE HOME (LIKE APPLIANCES). This will not be a reasonable remedy for the Lender and they will not work with you.
Please ask your CPA how a Short Sale vs. a Foreclosure will affect your taxes.
Chris Rodriguez, e-PROÂ®
Realty Executives - Central Region
(512) 366-8181 Office
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REALTORÂ® - Licensed to Practice Real Estate in the Great State of Texas
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