Many times (many, hundreds of times) people ask me a simple question:
Should I keep making my mortgage payment or should I do something different?
And the answer I usually give is something close to "it depends".
And what it actually depends on is something different for each person. It depends on their personal financial situation, their family situation, their job situation, their overall life situation if you will.
And each person is in a different spot when it comes to what their entire life situation looks like when it comes to making decisions like this.
And at least one other local loan officer gets these same questions, so see what he has to say about it:
The first thing I always bring up is that if you are in a situation where you can't/won't make your house payment, you should strongly consider speaking with an attorney who is familiar with real estate law in your state. Whether or not you end up hiring that lawyer as counsel is up to you, but it is a really, really good idea to speak to them about your options.
And after you speak with an attorney, it is going to be fairly clear that your basic options are:
1. Get your lender to grant you a loan modification 2. Short sale your house 3. Negotiate for a deed-in-lieu of foreclosure 4. Go through foreclosure
Each one of these options has different risks, possible outcomes and potential reliefs. It is important for you to be clear on what each scenario looks like and what your risks are for your individual situation.
The best way to get clear on what your risks are?
Speak with a lawyer.