PRESS-NEWS.org - Press Release Distribution
PRESS RELEASES DISTRIBUTION

Options for Underwater Mortgages

Homeowners with underwater mortgages may want to consider loan modification, short sales, voluntary foreclosure or bankruptcy.

2011-11-24
November 24, 2011 (Press-News.org) When the economy collapsed in November 2008, many homeowners suddenly found themselves with underwater mortgages, owing more on the mortgage note than the house that secured the note was worth. As the economy continued to falter, many found it difficult to keep up with their exorbitant mortgage payments.

The residential real estate market shows few signs of significant recovery any time soon. According to RealtyTrac, a firm that records home foreclosure data, lenders foreclosed on over one million homes in 2010 alone - a record number. In Alabama, foreclosure sale listings show that lenders foreclosed on 19,896 homes in 2010. RealtyTrac data for 2011 suggests another record-breaking year for foreclosures. In the face of such a grim situation, many homeowners are wondering what their options are for their underwater mortgages. Homeowners with underwater mortgages may want to consider loan modification, short sales, voluntary foreclosure or bankruptcy.

Loan Modification

One possibility for those with underwater mortgages is to speak with the lender about a loan modification. Unfortunately, those who need modifications the most, such as the unemployed or those who are behind in house payments, often do not qualify for them.

Additionally, lenders often tack on fees for loan modifications. According to The Wall Street Journal's SmartMoney analysts, almost 45 percent of loan modifications result in higher monthly payments for borrowers due to lenders' fees.

Industry experts also warn homeowners to be on the lookout for loan modification scams. Many desperate homeowners have given money to companies promising to negotiate loan modifications only to have the company run off with the money. The best way to pursue a modification is to speak to the lender directly or to hire an attorney for assistance.

Foreclosure

In certain instances, it may make most sense for the homeowner to walk away from the home and let the lender foreclose. Foreclosure negatively impacts a credit score for up to seven years. Some may not consider that an issue, since they do not intend on trying to purchase another home within that time. However, a credit score also affects a person's ability to rent an apartment and obtain some jobs.

When a person simply lacks the money to keep fighting foreclosure, though, a voluntary foreclosure may be the least costly option.

Short Sales

A short sale occurs when the owner of a house sells the home for less than the amount that the owner still owes to the lender. This option is difficult, as it involves listing the property with a real estate agent, finding a willing buyer, submitting the offer and a "hardship package" to the lender and then getting the lender to agree to the sale. Some lenders may be willing to agree to the short sale rather than having to go through the work of foreclosing on the property, but it is often difficult to get lender approval for short sales. Not all homeowners qualify for short sales, either.

A seller considering a short sale needs to examine the sale documents carefully to ensure that the lender is releasing the homeowner from liability for the deficiency between the loan amount and the sale price of the home. Some lenders have been agreeing to short sales and drawing paperwork that makes the homeowner liable for the difference in the sale price and the loan debt, meaning that the homeowner now has no home but still has debt.

Another aspect of a short sale that a homeowner needs to consider is that he or she may have to pay federal income taxes on the difference between the amount that he or she owes on the house and the amount the new buyer pays for the house.

A short sale also damages a person's credit rating, but not nearly as long as a foreclosure does. A short sale stays on a credit report for roughly 24 months.

Bankruptcy

Experts suggest filing bankruptcy as a last resort for those struggling with underwater mortgages. While filing a bankruptcy petition does stay any foreclosure action on the part of the lender, bankruptcy is more suited to helping those struggling with unsecured debt such as credit card or medical bills.

Filing bankruptcy affects a person's credit rating for seven to 10 years, depending on the type of bankruptcy a person files.

What Not to Do

Experts recommend that those struggling with underwater mortgages avoid certain tactics:
- Short sales to friends: homeowners who sell their houses to friends thinking that they can re-purchase the home from the friend at a later date for less money are committing fraud and could face criminal charges
- Do not tap retirement savings to try to save a house because retirement accounts are often protected from liens and this money may be all that the homeowner has left after losing a house

The prospect of losing a house can be extremely stressful. If you have an underwater mortgage and are struggling to make payments, contact an attorney who can discuss all of your options with you and help you decide the right course of action.

Article provided by Gina H. McDonald & Associates, L.L.C.
Visit us at www.ginamcdonaldlaw.com


ELSE PRESS RELEASES FROM THIS DATE:

Finger (mal)formation reveals surprise function of desert DNA

2011-11-24
Scientists from the EPFL and the University of Geneva have discovered a genetic mechanism that defines the shape of our members in which, surprisingly, genes play only a secondary role. The research published in Cell, online the 23rd of November, shows the mechanism is found in a DNA sequence that was thought, incorrectly, to play no role. This long string has seven enhancers which, when combined with one another, modulate the activity of the genes responsible for the formation of the fingers – an important fundamental discovery for the field of genetics. The discovery ...

Are Many Spinal Surgeries Unnecessary?

2011-11-24
Spinal surgeries are risky procedures that require hours under anesthesia, and days of hospitalization, so no patient likely takes the decision to undergo such surgery lightly. Most are following their doctors' recommendations, but such recommendations are coming under increased scrutiny. Chronic back pain--one of the common complaints that cause doctors to recommend spinal surgery--is one of the top 10 diseases in the US according to Forbes.com. It is also one of the most expensive: Americans spend $32 billion per year treating back pain, including spinal surgeries. ...

Genetic study confirms: First dogs came from East Asia

2011-11-24
Researchers at Sweden's KTH Royal Institute of Technology say they have found further proof that the wolf ancestors of today's domesticated dogs can be traced to southern East Asia -- findings that run counter to theories placing the cradle of the canine line in the Middle East. Dr Peter Savolainen, KTH researcher in evolutionary genetics, says a new study released Nov. 23 confirms that an Asian region south of the Yangtze River was the principal and probably sole region where wolves were domesticated by humans. Data on genetics, morphology and behaviour show clearly ...

Tiny levers, big moves in piezoelectric sensors

2011-11-24
VIDEO: Animation of PMN-PT microcantilever. Click here for more information. A team of university researchers, aided by scientists at the National Institute of Standards and Technology (NIST), have succeeded in integrating a new, highly efficient piezoelectric material into a silicon microelectromechanical system (MEMS).* This development could lead to significant advances in sensing, imaging and energy harvesting. A piezoelectric material, such as quartz, expands slightly when ...

Rezidor Signs Global Partnership with World Clean Up 2012

2011-11-24
Rezidor, a rapidly-expanding worldwide hotel company, has announced a partnership with World Clean Up 2012, a global campaign which aims to clean up illegal stray garbage in 100 countries and raise people's environmental awareness worldwide. Together with Carlson, majority shareholder and strategic partner of Rezidor, the company will join and support World Clean Up activities throughout the year and celebrate the end of the campaign 2012 in September during Rezidor's traditional "Responsible Business Action Month." Rezidor and Carlson are the only global partners ...

The scoop on the dangers of snow shoveling

2011-11-24
Urban legend warns shoveling snow causes heart attacks, and the legend seems all too accurate, especially for male wintery excavators with a family history of premature cardiovascular disease. However, until recently this warning was based on anecdotal reports. Two of the most important cardiology associations in the US include snow -shoveling on their websites as a high risk physical activity, but all the citation references indicate that this warning was based one or two incidents. "We thought that this evidence should not be enough to convince us that snow -shoveling ...

Studying bat skulls, evolutionary biologists discover how species evolve

Studying bat skulls, evolutionary biologists discover how species evolve
2011-11-24
AMHERST, Mass. – A new study involving bat skulls, bite force measurements and scat samples collected by an international team of evolutionary biologists is helping to solve a nagging question of evolution: Why some groups of animals develop scores of different species over time while others evolve only a few. Their findings appear in the current issue of Proceedings of the Royal Society B: Biological Sciences. To answer this question, Elizabeth Dumont at the University of Massachusetts Amherst and Liliana Dávalos of Stony Brook University together with colleagues at ...

Kuoni Launches New 'Discover' Brochure

2011-11-24
Kuoni, a leading travel operator in the UK, has revealed in its new 'Discover' brochure, a collection of enthralling holidays aimed at adventurous travellers. Whether it's hot air ballooning in Jaipur, tea with a Gurkha family, zip-lining in Honduras, horse riding in Uruguay, cruising in Antarctica, snorkeling in the San Blas Islands in Panama, wildlife spotting in Guyana or walking the Inca trail in Peru, readers of the brochure are invited to engage with the many adventures available through Kuoni travel. These exciting and iconic experiences are just a few that fill ...

UIC study identifies a key molecular switch for telomere extension by telomerase

2011-11-24
Researchers at the University of Illinois at Chicago College of Medicine describe for the first time a key target of DNA damage checkpoint enzymes that must be chemically modified to enable stable maintenance of chromosome ends by telomerase, an enzyme thought to play a key role in cancer and aging. Their findings are reported online in Nature Structural and Molecular Biology. Telomeres are the natural ends of chromosomes, consisting of specialized DNA-and-protein structures that protect chromosome ends and ensure faithful duplication of chromosomes in actively dividing ...

Rezidor Announces the Park Inn by Radisson Milan Malpensa, Italy

2011-11-24
The Rezidor Hotel Group, one of the fastest growing hotel companies worldwide, announced the first Park Inn by Radisson hotel in Italy. The hotel group revealed that the Grand Hotel Milan Malpensa will be transformed into the Park Inn by Radisson Milan Malpensa. The property, which features 138 rooms, is 10 minutes from Milan Malpensa Airport and has easy access to nearby businesses and Milan's exhibition centres. "We are delighted to bring our dynamic mid-market brand Park Inn by Radisson to Italy. We also further strengthen our position as one of Europe's largest ...

LAST 30 PRESS RELEASES:

Breathable yet protective: Next-gen medical textiles with micro/nano networks

Frequency-engineered MXene supercapacitors enable efficient pulse charging in TENG–SC hybrid systems

Developed an AI-based classification system for facial pigmented lesions

Achieving 20% efficiency in halogen-free organic solar cells via isomeric additive-mediated sequential processing

New book Terraglossia reclaims language, Country and culture

The most effective diabetes drugs don't reach enough patients yet

Breast cancer risk in younger women may be influenced by hormone therapy

Strategies for staying smoke-free after rehab

Commentary questions the potential benefit of levothyroxine treatment of mild hypothyroidism during pregnancy

Study projects over 14 million preventable deaths by 2030 if USAID defunding continues

New study reveals 33% gap in transplant access for UK’s poorest children

Dysregulated epigenetic memory in early embryos offers new clues to the inheritance of polycystic ovary syndrome (PCOS)

IVF and IUI pregnancy rates remain stable across Europe, despite an increasing uptake of single embryo transfer

It takes a village: Chimpanzee babies do better when their moms have social connections

From lab to market: how renewable polymers could transform medicine

Striking increase in obesity observed among youth between 2011 and 2023

No evidence that medications trigger microscopic colitis in older adults

NYUAD researchers find link between brain growth and mental health disorders

Aging-related inflammation is not universal across human populations, new study finds

University of Oregon to create national children’s mental health center with $11 million federal grant

Rare achievement: UTA undergrad publishes research

Fact or fiction? The ADHD info dilemma

Genetic ancestry linked to risk of severe dengue

Genomes reveal the Norwegian lemming as one of the youngest mammal species

Early birds get the burn: Monash study finds early bedtimes associated with more physical activity

Groundbreaking analysis provides day-by-day insight into prehistoric plankton’s capacity for change

Southern Ocean saltier, hotter and losing ice fast as decades-long trend unexpectedly reverses

Human fishing reshaped Caribbean reef food webs, 7000-year old exposed fossilized reefs reveal

Killer whales, kind gestures: Orcas offer food to humans in the wild

Hurricane ecology research reveals critical vulnerabilities of coastal ecosystems

[Press-News.org] Options for Underwater Mortgages
Homeowners with underwater mortgages may want to consider loan modification, short sales, voluntary foreclosure or bankruptcy.