Homeowners Facing Financial Challenges

Guiding you through life’s unexpected turns with care and understanding

Sometimes life takes an unexpected turn, and keeping your home becomes difficult. If you’re facing financial challenges and can no longer afford your mortgage, know that you’re not alone—and you do have options. My goal is to help you understand those options, protect your credit, and guide you toward the best possible outcome for your situation. Whether that means exploring a short sale, discussing alternatives to foreclosure, or creating a plan for a fresh start, I’ll be with you every step of the way. Together, we can find a path forward that helps you move ahead with confidence and peace of mind.

holding onto the property

If your home’s value is lower than your mortgage balance but you’re not under pressure to sell, holding onto the property may be the best option. During financial challenges, consider selling off other material items and/or seeking short-term help from family or other resources. With limited equity, refinancing might not be possible—but check with your lender about hardship refinance programs, as these options can change frequently. Focus on maintaining your credit health.

Turn your home into income while you move

If you need to move, consider renting out your home instead of leaving it vacant. With rental demand on the rise and limited homes available, many homeowners are earning excellent monthly income by turning their properties into rentals. This can be a smart way to keep your investment working for you while meeting the growing need for quality rental homes.

SELL THE PROPERTY AND BRING CASH TO ESCROW

This might not sound appealing, but it can be a good choice for sellers who are in a financial position to pay a deficiency from other liquid assets. This approach avoids the credit damage that even a successful short sale will cause. An alternative in some circumstances is for the seller to agree to convert any deficiency into a personal note, or a note on another property owned by the seller. Sellers are advised to consult appropriate legal and tax professionals before considering such a note.

Explore your options with lender

Lenders are increasingly willing to help homeowners experiencing financial difficulties stay in their homes. In some cases, they may reduce or roll back interest rates or lower monthly payments to help avoid short sales or foreclosure. Homeowners considering this option should consult an attorney and be aware that new laws and lender policies are continually evolving.

OFFER LENDER A "SHORT SALE"

Be aware that, on occasion, lenders have “approved” short sales that included personal notes for the deficiency, and unwitting sellers have signed the notes without a full understanding of the consequences. Note that the lender is a principal in the transaction. The agent represents the seller, not the lender. In a short sale, the offer is negotiated with the seller, just as in a traditional sale. The offer is then submitted to the lender, not for an “acceptance” but for the terms and net proceeds.

DEED IN LIEU OF FORECLOSURE

If you owe more than your home is worth and are struggling to make payments, consider exploring a deed in lieu of foreclosure. This option allows you to transfer the property to your lender in exchange for canceling the mortgage, helping you avoid the long and stressful foreclosure process. Always consult an attorney before moving forward.

Help Avoid Losing Your Home

Foreclosure prevention counseling and homeless counseling services are available free of charge through HUD's Housing Counseling Program. Housing Counseling agencies participating in HUD's Housing Counseling Program are not permitted to charge consumers for these specific housing counseling services. Counseling recipients should not pay for these services. However, housing counseling agencies are permitted to charge reasonable and customary fees for other forms of housing counseling and education services, including pre-purchase, reverse mortgage, rental, and non-delinquency post-purchase counseling services, provided certain conditions are met:

Agencies must provide counseling without charge to persons who demonstrate they cannot afford the fees;
Agencies must inform clients of the fee structure in advance of providing services;
Fees must be commensurate with the level of services provided.

Help Avoid Forclosure