Many homeowners  in Contra Costa County are still struggling to make their mortgage payments. This can be due to the type of mortgage they have – interest only or adjustable or through a personal situation rendering them unable to make payments such as loss of job, reduction in income, health issues or some other hardship.

Many have tried to get a loan modification only to spend months in the process and then be denied. So many people have drained all their financial resources and are facing losing their home to foreclosure. I spoke with a woman the other day who is barely getting by. She doesn’t want to sell her house and is embarrassed as to what the neighbors will think. Does it really matter what the neighbors think when you are getting sick due to the stress of the situation?

A short sale is an alternative that thousands of homeowners have utilized to sell their homes rather than face the reprucissions of a foreclosure. Many of the lenders are now encouraging homeowner to go the route of the short sale and are offering incentives ranging from $3,000 to $20,000. Many folks who are behind on their payments let any correspondence from lenders pile up as they don’t want to face the situation. What they don’t know is hidden in those letters may be your lender offering financial assistance to help you complete a short sale. Open the mail!!

In addition the Debt Forgiveness Act of 2007 is set to expire at the end of 2012. Will it be extended – we don’t know. It is part of the 2013 budget proposal. If not this means that as of January 2013 any debt that is forgiven through a foreclosure or short sale will disappear. You will be required to pay taxes on any forgiven debt.

Don’t wait until your home goes to the trustees sale at the County courthouse. Help is just a phone call away. Loan modification, deed in lieu or a short sale are all alternatives to a foreclosure. If you are uncertain as to what to do, talk with your lender or a Realtor.

About Linda Urbick Linda

has written 252 articles on this blog.


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