BankHelp.NET - Make My Payments - Foreclosure Help - Short Sale Help

Make My Payments*

It sounds obvious, but making the payments you agreed to make is the “easiest” option for keeping your house. You may have a good loan, with a low interest rate… You keep making your payments and nothing changes. Sure, your house may be worth less than when you bought it, but the truth is, a house’s value typically means nothing until you sell it. Who knows, you might even be able to get a break right away on the property taxes.

As you make your payments, ask yourself one very important question:

Why do I want to keep my house?

1. My home is an investment for the future. Some people invest in a 401k, this is my long term investment.

2. I am emotionally attached to my house and want to keep it at all cost. I’ve put a lot of work, time and money into this house. My kids & my spouse are attached to this house.

3. Shame, embarrassment, & pride will not allow me to sell (walk away). I don’t want anyone to know.

4. I am confused, and don’t know what my options are.

5. I borrowed the money and I am obligated to pay it back.

6. Comparing the amenities and benefits (Neighborhood, Schools, etc.) to other homes, staying and making my payments is less expensive than other choices. I have to live somewhere.

These are a few of the most common answers… You may have a different answer. Let’s take a closer look at these answers.

1. My house is an investment….. IS IT a good investment? Consider the time it will take to get back to ZERO and start earning money on your “investment”. Are you paying more for this investment than you would any other investment?

2. I am emotionally attached….. “Mine” makes sense when you’re a kid, but as adults we have learned to discipline our emotions. Are your kids and your spouse emotionally attached because you are?

3. Shame & Embarrassment….. Everyone is likely to find out eventually. Think about it… Aren’t most of your neighbors in the same situation you are?

4. Confused….. Hopefully, if you have read this far, you will find a few answers on this website. If you need more clarity, contact me.

5. Obligated….. Yes, you signed for the money and promised to pay it back. The bank knew there would be a possibility you may not be able to pay it back, so they accepted the house as collateral for the loan. Most states have laws that require lenders to forgive you of any remaining debt when they agree to a short sale. Don’t you think they planned for this?

6. Have to Live Somewhere….. If you find that moving will not improve your situation, you are on the right track here. Can you afford what you are paying, or is it time to downsize your lifestyle?

Experts agree you should plan to keep your home for at least 7 years if you expect to sell it for more than you paid. That means after 7 years, you might have enough money to pay real estate commissions and sales costs with a little left over for you. UNLESS… Home values are not going up as expected OR you owe more on your loan than your home value. If you plan to sell your home in the next 10 years, a Short Sale may be your only option.

Obviously this is a simple and brief look at a small sampling of possible options. The idea here is to get honest with yourself. You may also want to spend some time with a trusted advisor who can help you look at your own questions and answers.

Click Here to read a list of additional questions you may want to ask yourself.

ARTICLES

A List of Really Honest Questions to Ask Myself

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*This page is a list of observations that may or may not apply to your specific situation.

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