Know When to Hold 'Em, Know When to Fold 'Em!

Whether you agree with me that we are at the bottom of the real estate market or not, most will agree that this is not a Seller's Market. If you do not need to sell your property now, don't put it on the market.

There are a lot of home owner's struggling to pay their monthly mortgage payments every month. In a normal market, these home owners would consider selling the home and moving on to a more affordable home or rental. But with plunging real estate values, selling is just not an option this year.

There are many alternatives to selling that every home owner should investigate if they are having trouble paying their mortgage or even if they are behind a couple of months.

The Federal Government has created many financial incentives for lenders and loan servicers to work with home owners to modify mortgage terms or offer other solutions to avoid foreclosure.

Some of the work out options include:

• Reduced Interest Rates
• Reduced Mortgage Principal
• Convert Interest Only Mortgage to Fixed Mortgage
• Extend 30 year Mortgage to 40 year Mortgage
• Forebearance ( reduced mortgage payments for 3 months)

To find out if you might qualify for a mortgage work out check out the government website:

http://makinghomeaffordable.gov/

If you do not qualify, you may be advised to short sale your home to avoid foreclosure and help to reduce the impact on your credit.