Sometimes you may find yourself in the position of not having enough income to cover your mortgage. It is better to admit this sooner, rather than later.
A real estate friend of mine told me about a young couple that he knew for several years. They had purchased their first home through him, a lovely place that they really enjoyed and could easily afford.
One day, the husband lost his job. Although they had a considerable amount of equity in the house, instead of listing immediately and getting into a cheaper home, they waited until the house was being foreclosed.
After paying late fees, attorney fees, and bank charges, they found that their equity was almost totally gone. If they had gone ahead and sold their house before they got behind, they would have had a nice nest egg to carry them into their next home.
They should have been completely honest with their real estate agent. While they had called him when the hubby first became unemployed, they chose to “wait things out a bit” and by the time they called the agent back, their equity was depleted.
They should have understood that a legitimate agent is there to help them, not hurt them, and they should have been more forthcoming with their agent. The agent can only help you if he or she knows the full story of what is going on.
What stories have you heard about foreclosure woes? If you can share a story, please do not include names or locations.