When it comes to mortgage related problems, many people seem to think that it is only the average American who is likely to default in mortgage payment and thus might be in need of mortgage assistance in order to prevent foreclosure or foreclosure alternatives.
This is however not the case as drastic changes to a homeowner’s fortunes can result in the homeowner becoming delinquent and in need of financial assistance. By defaulting in mortgage payments, a homeowner is liable to face foreclosure as his or her bank would want to cash in on the property so as to recoup some of its investment in the home loan.
Many delinquent homeowners in the US have faced foreclosure in recent times with quite a substantial number of them making use of other alternative programs such as short sale or deed in lieu of foreclosure in order to lessen the effect foreclosure would have had on them.
The main reason why a homeowner would default in mortgage payment is when the homeowner’s income falls below what could adequately support his or her mortgage payment. Just as the owner of a multimillion dollar home could suddenly be in a situation where he or she would not have enough money to make mortgage payments, so can the owner of a single family home fall into the same sort of problem.
Mortgage providers grant home loans based on the financial capacity of the borrower to repay the loan. In the absence of that financial status, with which the borrower obtained the loan, the ability of the borrower to make payments can become very difficult to achieve.
It also becomes a problem for many homeowners to keep up with mortgage payments especially in times like this when devaluation is constantly dragging property values down. Many homeowners have come to realize that they owe more on their home loans than what their homes are actually worth. For this reason, some of these people simply walk out on the loans while others arrange to have their mortgage providers agree to a short sale to enable them pay up the loan.
Well before the housing sector showed any glimpses of falling into crisis, R Kelly custom built a home in the Chicago area. The mansion which contained 16 rooms also had a theater room, an indoor pool, 8 bathrooms and other luxurious facilities.
After the financial downturn, Kelly, like the millions of Americans who are having problems paying their mortgages failed to make mortgage payment for close to a year. His mortgage providers decided to foreclose on the property, a move that was objected to by the singer resulting in a protracted $2.9 million worth lawsuit.
Finally, the Grammy award winner has reached a deal with the mortgage provider to put the 22,000 square foot mansion under short sale. However, any potential buyer of the property must be prepared to cough out $1.595 million in order to purchase the property.