Home Mortgage Facts! No Equity? We Can Help!!!
Industry research has revealed 5 options that home sellers have when facing a foreclosure. Each one can have a very different and significant impact on the outcome of this critical situation. If handled quickly and correctly, the financial disaster of foreclosure can be avoided saving your credit and thousands of dollars.
1. Do nothing:
If you ignore the lender and do nothing, you will eventually be foreclosed on.
Once you are foreclosed on, you will have to move out and there is no way to get the house back. The lender may sue you for the shortfall, and if they are successful a deficiency judgment will follow you around literally forever.
2. Work out a payment plan with bank:
Many lenders offer a Repayment, Workout or Forbearance Plan. These agreements require the borrower to continue making regular payments on a scheduled basis over a period of several months (typically 18 months). It is typically the regular monthly plus a portion of the delinquent amount to bring the account current by the conclusion of the repayment or Forbearance Plan. This option works well only if you had a temporary hardship and will be able to make your regular payment plus and additional payment as required in order to catch up on what you owe.
3. Deed –in-Lieu of Foreclosure: A Deed-in-Lieu of Foreclosure is the voluntary transfer of the property back to the lender in place of foreclosure. Requirements vary by lender, but typically the property must have been listed for sale at the fair market value for at least (90) days without an acceptable sale transaction to be eligible. This option may work if you have already had your home for sale the required amount of time, but in most cases you will still
be responsible for any shortfall between what the lender is able to sell the house for and what you owe. It can have the same negative impact as a foreclosure on your credit.
4. Sell your home to an investor: There are many “investors” who purchase homes that are facing foreclosure. Some of them genuinely want to help, but all are looking to profit from your unfortunate circumstances. They promise to negotiate a greatly reduced loan payoff called a Short Sale. The more successful they are in lowering the purchase price, the more money they make. Most lenders are less willing to negotiate directly with these investors as they know they are just trying to profit from the negotiations. (Because of this your lender may see this person as the enemy. Many times the investor is unable to make enough profit and walks away. Sometimes the investor is doing something illegal and you end up losing more than if you would have just been foreclosed on. Even if they are successful, if they were only looking out for their best interests (not yours) you could still be sued for the difference between the amount owed and what the investor purchased the property for. You must ALWAYS get in writing from your lender an agreement to forgive the debt.) Lenders prefer negotiating with REALTORS as they are not seeking a large profit from the purchase and only seek to facilitate the sale while helping everyone. This Option can be very risky for the home seller.
5. Short Sale / Pre-Foreclosure Sale: A program whereby the lender accepts less than the full payoff amount due in order to avoid foreclosure. Most lenders prefer to negotiate a reduced settlement rather than go through the extra time and expense of a foreclosure. Any REALTOR may tell you they can help, but your best chance of successfully negotiating a Short Sale or Pre-Foreclosure Sale is to work with a REALTOR who has a proven track record negotiating with lenders to forgive your debt and allow you to walk away from your situation without a foreclosure on your credit and without messy lawsuits or judgments. These select REALTORS are short Sale specialists. They aggressively market your house and solicit multiple offers. They then build a strong case with your bank explaining your situation and negotiating with them to accept less that what you owe to avoid foreclosure and forgive the debt. This option works in most circumstances, regardless of how far behind you are on payments or how much or how little equity you have. Not all options are available to all homeowners. Whether or not you qualify for any of the above referenced alternatives will depend upon an analysis performed in accordance with your lender’s guidelines and procedures. You will likely be required to provide specific information regarding the reason for your financial hardship, recent pay stubs, bank statements, and other supporting documentation the lender requires.You should note that while you are applying for any program, and while any analysis is being performed, collection and /or foreclosure activity will continue. Information about your account is being reported to Credit Reporting Agencies. Late payments, missed payments, or other defaults on your account will be reflected on your credit report and will affect your Credit Rating. With a successfully handled short sale, credit scores & reporting of a short sale is reported completely different from a foreclosure . So the short sale becomes a big advantage to the homeowner.
TAKE ACTION Whichever option you choose, you must act quickly in order to avoid foreclosure. Make sure you ask questions and be as informed as possible, but start the process immediately. Make sure that the person helping you can prove how they have helped others in a situation like yours.Fill out the Form Below and let me give you a Private confidential Analysis of your situation. I am sensitive to helping your needs. After all I was in the same situation on my Home! I will also Email you some Rental Properties.....TAKE ACTION NOW
There is absolutely no cost for this.