But what can you expect in pre-foreclosure, foreclosure, and life after foreclosure? Let us take you on a tour. You see, we’re not only Realtors—we’re Realtors who have stood exactly where you’re standing now: at the beginning of a new life.
It might not feel that way right now. Believe us, though, with knowledge and perseverance, you can survive your underwater mortgage and your foreclosure and come out the other end smiling!
Now let’s define some terms. Pre-foreclosure is the roughly 2-month period between the time you decide to stop paying on your underwater mortgage and the time that your mortgage lender will realize something’s “wrong” and possibly set a Trustees Sale Date for your home.
You can’t wait that 2 months before getting your ducks in a row, though! If you’re going to need and you can afford a new car, get it now before your first mortgage payment is late. Just that simple step will save you hundreds of dollars in interest at least!
During pre-foreclosure, it’s also time to start assessing options like applying for a mortgage modification and whether or not you want to negotiate a short sale with your mortgage lender. You almost certainly won’t get a modification—less than 3% of applicants do—and it’s possible that going the short-sale route will just prolong the foreclosure if your house doesn’t sell.
But in the meantime, you’re living in your house mortgage-payment free, potentially for a year or more! This is money you can start using to plan for your future. Whatever you do, though, make sure you stay up to date with your other bills. This will help protect your credit even after the hit you’re going to take from your foreclosure.
As for life after foreclosing on your underwater mortgage, a lot of that is what you make of it. Yes, you may end up paying cash for more things for a few years. But so what? Easy credit is the reason so many of us ended up in underwater mortgages in the first place.
One thing that Kristin and I have found enjoyable, in fact, is that we spend so much less time on stuff now and so much more time together with our children. For us, getting out from under our mortgages wasn’t just a necessary move—our lives after foreclosure have been more meaningful than they were before.
Yes, realizing you have an underwater mortgage is really pretty stressful. Kristin and I feel for you! But the other thing you need to keep in mind is that you have a valuable opportunity to start your life over. This is your chance to evaluate your priorities and decide how you and your family really want to spend your time and money.
Whatever you do, keep your sense of humor strong, your lines of communication open, and your heads clear. Do that, and you may just find—as we have—that you enjoy your life after foreclosing on your underwater mortgage even more than you did before!
Bud and Kristin Gragg have over thirty years of Real Estate sales, investing, and development experience combined, they have just survived liquidating over 24 million in underwater investment Real Estate and their incredible story needs to be heard by millions right now. Go To: http://www.TheUnderwaterMortgage.com where you can get a FREE Special Report “Underwater Mortgage Secrets: What the Banks Don’t Want You to Know” Just for stopping by!! If you or anyone you know is Underwater in their home or any of their investment properties – the information on http://www.TheUnderwaterMortgage.com is an absolute must!
Bud and Kristin Gragg
The Underwater Mortgage
101 N Coloradro St Suite 2710
Chandler AZ 85225
480-497-5600
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