If you are in financial difficulty with your home, don't stick your head in the sand. If things are going sideways for you and you are not able to manage your mortgage, seek help. There are ways to negotiate with the bank to help stop the bleeding. It is far better to deal with the bank up front than allow your home to go power of sale.
A soon as power of sale starts with the bank, there will be many fees added to the oustanding balance. These fees will eat into and many times completely deplete all the equity you may have in your home. This is not to mention the impact on your credit report. I met a couple that had a second mortgage with a client of mine. The mortgage holder called me and asked me to speak with them. He told me that if they put the home on the market with me that he would not go power of sale on them. They would have had a little more than $25,000 in equity from the sale. When I met with them, they told me that they would hang on and make it work. They kept falling farther and farther behind. By the time power of sale took place 5 months later, all their equity and more was gone. It was eaten up by missed payments, accrued interest, penalties, and fees. So not only did they lose the house anyways, they now lost their equity, and they were sued for the loss suffered. As extra insult, they found gettiing a rental very difficult because their credit was ruined for 7 years. They went to get a car loan and had to pay 24% interest on the loan.
The moral of the story is do not put off the inevitable. Bouncing back from a power of sale is so much more difficult. Seek help as early as possible. Listen to good advice so you won't have to suffer what the above people had to. It was very sad to watch. I was there the day that the Sheriff came to their door and told the family they had to leave now. They were totally defeated and dejected. I hope that I never have to wAatch that again.
For help on this or any other real estate related matter. Please call me at:
Michael Andrews, salesperson
Century 21 Leading Edge Realty Inc., Brokerage