They thought they were following the American dream: Buy a small house after marriage in Florida, buy a bigger Florida house, and raise children. Their dream took a detour when a job offer in Alabama forced Kitty McCoy and her husband into financial troubles. They found themselves in triple mortgage troubles after trying to sell at least one Florida house, unsuccessfully. The couple had the house on the market for a while, until they finally had an offer. The house was set to close in three days and the buyer died of a heart attack. Kitty and her turned to renting at least one house and took in less than their mortgage payment. Their dream faded and the couple found themselves deep in mortgage debt and asking what went wrong.
The real surprise is that the McCoys are not alone when it comes to mortgage woes and having children in college or about to enter college. Should the couple have turned to a mortgage counselor? It may have helped the couple before they found themselves in serious, crippling financial debt.
This may be the one question the McCoy couple failed to ask before they were mired in debt. How can realty companies in Birmingham Al help? Many couples, like the McCoys, may fail to ask that question before they are in deep financial debt. Many reality companies in Birmingham Al have the experts that they can advise of the pros and cons of taking out a house mortgage. They can thoroughly explain the mortgage process, so you do not feel rushed to make a decision. Many realty companies in Birmingham Al have a specialist, who specializes in the mortgage lending process. These specialists are realty companies in Birmingham Al can file the necessarily paperwork for you so that you are one step closer to living in your dream house.
How can realty companies in Birmingham Al help you if you do find yourself in debt and holding an underwater mortgage? A realtor who specializes in mortgages can help you decide what your options are if you do fall behind on mortgage payments. Contrary to what some borrowers may think having a traditional short sale is not the only option Birmingham residents have if they do experience mortgage woes and do not simply want to hand the bank over their property and walk away. Keep in mind it is easy for those who have been living on the property to think they do not have to move. Realty companies in Birmingham Al can dispel this myth for you, though they may not be able to tell you your legal options. You should seek out an attorney who specializes in underwater mortgages and can advise your of your best options should you hold a mortgage, a double mortgage or even a triple mortgage, as the McCoys did.
This may be the mistake, which doomed the McCoys years earlier. It is easy to think that remodeling project on your Birmingham house will add value to your home and even easier to take out more money than you really need. Limit yourself to taking out no more than about 15 to 20 percent of your home equity for those housing remodeling projects and opt to take on projects that will add value to your house. Installing hard wood flooring will not recoup you money when you do decide to sell. If you simply want to replace bad flooring, opt to replace the flooring with similar or cheaper costing materials.
Once you are in debt with a mortgage, do not worry about fixing up your house. You will not recoup any of the cost and realty companies in Birmingham Al can tell you unless it needs fixing before you sign a short sale contract with a buyer, it is not worth the hassle. A mortgage company may give you up until the time of a foreclosure action, if a short sale option falls through to buy your house from the bank that holds your loan. Some mortgage companies will not give you this option; it depends on who holds your mortgage and if they are willing to work with you before your house sells. If you can manage to do a traditional short sale, the only comfort may be falling behind on your mortgage will not affect your credit in the same way. It will not ding your credit as deeply as falling into foreclosure will.