Insolvent?
Insolvency is a more serious financial condition where you simply do not have enough income or savings to pay your mortgage or get out of debt. It is a big problem, and you are not alone in it.
A decade of economic expansion and rising house prices was built on the back of easy credit. The bubble has now burst, lenders are retrenching and consumers are struggling with financial difficulties and personal debt issues. According to research published by AXA, 3.7 million individuals are struggling to maintain payments on credit card debt. AXA also stated that 1.02 million people have borrowed more than they can afford to repay and are struggling to make mortgage repayments. In all, 11.6 million adults are dealing with financial difficulties and high levels of personal debt.
Insolvency can certainly lead to foreclosure or bankruptcy, but it can also lead to another potentially more desireable option called a 'short sale', where the lender may agree to allow you to sell the house prior to forclosure, and accept less than the total amount owed as settlement of the mortgage.
We can help you sort out whether you might qualify for this, and whether your lender might cooperate - contact us to talk about short sale realities and options.