You are the owner of your home till the day it is sold by the lender through an auction. Your home belongs to you whether it is valued to be less than the amount you owe on mortgage or the equity has created more than the mortgage amount. Due to the fact that you are defaulting in your mortgage payments, your lender is triggered to start the action of repossessing your property which is serving as collateral. In most cases, the whole process could take a long period of time. This is not in favor of your lender; hence, he would prefer having a short foreclosure sale.
Your home is valuable than the amount you owe on mortgage. But because you are experiencing a hard time financially, you cannot make the payments on mortgage anymore. When the lender begins a foreclosure, just act fast and put up your home for sale in the market. This must be done before the main foreclosure occurs. You would sell your house, the lender would receive his payments and you would still have some money in your pockets. Furthermore, you would not experience any credit damage. As a result, you would not lose at all.
When to Sell?
When it is certain that you cannot afford the mortgage payments anymore, this is the time to put your home on a short sale. A short sale means that you are selling your home for less than the amount you owe on mortgage. When your lender approves based on the financial hardship you are facing, you would list your home with a specialist on short sale from a real estate brokerage. You can do this before even missing out your first payment.
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