According to an article in the Dallas Morning News, a government report noted that U.S. home prices fell 6.3 percent in January from the same month in 2008. Such a significant drop in home prices is negatively affecting homeowners here in Texas, especially those facing foreclosure . Homeowners facing foreclosure are finding it nearly impossible to sell their homes, not just because there are fewer buyers; but because they can’t sell their home at a price that will allow them to repay the mortgage. Because of this dynamic, many homeowners facing foreclosure are forced to plead with the bank to accept a short sale. Unfortunately, even in these financially stressed times, many banks are not willing to accept short sales from homeowners facing foreclosure.
If you’re a homeowner facing foreclosure and your home’s value has dropped significantly you may want to consider attempting to modify your mortgage with the bank or filing bankruptcy. Currently legislation is moving through Congress that could allow homeowners to modify their mortgage in bankruptcy; but will most likely require homeowners to request a modification through the bank first. If you request a mortgage modification from your mortgage lender make sure you keep thorough written records of your attempts and their response. If this bankruptcy legislation is passed, those records may help you win a mortgage modification during bankruptcy.