Who is responsible?
Take a look back, when you were so much in a rush to purchase a home, you forgot the priority of due diligence to yourself. You ran to an open house and said I need a house and you wanted to get in it quick that you didn’t want inspection, appraisal, or even a financing contingency to come between that property.
“Now I am in a crunch, what should I do? My payments have increased and my loan floats every month.”
You have two options:
1) Call your bank, talk to them, see what they can offer. “Federal and state banking regulators urged lenders and investors to restructure the loans of millions of borrowers at risk of losing their homes as their adjustable-rate mortgages reset to a higher rate.” (realestatejournal.com, Sept 6)
2) If this is your only option, you might have to sell your property. If you have enough equity, then it is ok for you, but if you don’t then you need to speak to your bank again. Your realtor can play and important role in assisting in this process. They would need to know the requirements of the banks and their guidelines. This is either called a SHORT SALE or a SHORT LIST. They may require some contribution on your part depending on the situation. Many documents including a financial statement is required for this process. Bank would usually accept a sales contract no less than 90% of the appraised value of the home.
In any situation your bank can help. Don’t wait till the last minute to resolve this problem, it will only cause agony to you.
Need more info on short sale and foreclosure, Call 301-637-5700 x 301. We will be glad to help.