Home Insurance in Alabama>Question Details

Weetyman, Home Owner in Alabama

can't afford mortgage payment after forced to buy hurricane insurance. what can i do?

Asked by Weetyman, Alabama Fri Jan 21, 2011

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When home owners can no longer afford the expenses associated with their home ownership, the first course of action should be to approach your lender and request a "loan modification." If granted, this act will hopefully reduce your monthly fees to an acceptable level.
0 votes Thank Flag Link Fri Jan 21, 2011
Your situation is tough and you need professional help navigating through this. As I interpret your question, you are a homeowner in an area that requires hurricane insurance and because of this you can no longer afford your house payment. If that is the case, and especially if you find that you are falling behind on other payments, you are going to have to have your lender either modify your payments or do a short sale. A short sale is where the bank agrees to accept an offer from a buyer at a price that is lower than what the payoff is on your loan. Most of the time this price is also lower than market value, which makes it a great deal for a buyer. Sometimes, depending on your financial situation, your lender will require that you make some additional payments but this is not usually the case. It all depends on what you owe in total and what you can afford. You have to act fast, though, before foreclosure notices start or right at the beginning of that process. Often, once you receive that first foreclosure notice you only have 3 to 4 months before the property is sold at auction and you have to move. Foreclosure dings your credit badly for about 7 years, where a short sale hurts you, but not nearly as much. You need to have reators involved in the short sale process who know what they are doing, as the work and paperwork and knowledge required is complex and time consuming. I work with a team of agents who are specialists in short sales and can help you immediately. I am not on this team, and I don't usually work short sales, but I can tell you that they are excellent and I will be happy to refer you to them. If this is your scenario please call me at 251-367-3602 so that I can connect you or email me with your info and I will have them contact you. These folks have an excellent track record of getting short sales closed and negotiating with your lender to help you get your home approved for a short sale. If you talk with your bank about modifying your loan payments please begin right away, as the longer you wait the less control you have and the less time you have to make a short sale happen. I urge you not to delay. Even though the situation may seem difficult the best thing is to take action and move forward so that you can move on.
0 votes Thank Flag Link Fri Jan 21, 2011
If you can sell your property, that is an option, either as a short sale or for what you owe. You have options, would speak with legal council and an experienced local Realtor in your city to see what they are. Maybe different insurance? See where your comps are at and etc.

Best of luck.
0 votes Thank Flag Link Fri Jan 21, 2011
You either need to find a home in an area with lower insurance rates, or reduce the purchase price of the home so that your payment is in line with your maximum mortgage amount. Do you have a lender you are working with that can help you determine the right purchase price to be looking for? Are there areas maybe outside of flood/wind categories that make those insurance rates high you could be looking at? If you are looking in Mobile or Baldwin County I'd be glad to help you find the right area or house for the payment you need. Please contact me at (251) 459-4764 or pwalker@oracleofmobile.com.

I hope to hear from you!
0 votes Thank Flag Link Fri Jan 21, 2011
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