Avoiding Foreclosure

Foreclosure is Not the Only Answer

What are my options?

1. Sell the property:  if there is equity left, if not you could add money to the sale so it can close.  Many sellers are upside down with their property.  Which means that they owe more on the home than it is worth.  In that case you could sell the property but you would have to bring money to the closing to make up the shortfall.  Most sellers don’t have the extra money to make up the difference.

2. Foreclosure:  is another possibility. If you have stopped making your payments for a periodof 90 days the bank has the right to file a Notice of Default and begin foreclosureproceeding. It usually takes about 112 days after the Notice of Default is filled for the bank to have the Trustee’s sale on the property.  After the sale if you remain in the home the backwill evict you and take possession of the property.  The Foreclosure will go on your credit and so will the eviction.  The foreclosure will stay on your record for a very long time and rear it’s ugly head every time you apply for any type of credit.

3. Short Sale:  is when the mortgage holder agrees to take less than the amount that is owed on the loan.  The lender pays all the costs of sale and they usually relive the seller of further responsibility.  However, in some cases they will ask the seller to contribute funds towardsthe cost of sale.  A short sale is the best way to solve a difficult problem.  A short salewill not effect your credit score like a foreclosure will.  It is reported to the credit agenciesin a more favorable light.   The bank wants to do a short sale in most cases because they loose less money than with a foreclosure. 

What Will I Have to Do:

If you choose to go the short sale route you will have to qualify for the short sale.  You need to have a hardship of some kind such as:  Job loss, financial difficulty, health, divorce, death, etc.  In these trying times most people have a hardship.  The bank has forms that you will be asked to fill out.  We provide those for you.  The bank will also want two most current bank statements on all accounts and two most current pay stubs if you are working.  They will want a copy of your income tax as well.  We will gather the other information that the bank needs and put your information and ours together and send it to the bank.We would list the property for sale and begin the process of finding a buyer.  Once we have a buyer and you sign the purchase agreement it will be sent to the bank.  The approval process then begins.  It may take up to 120 days before we know if the bank will accept the offer you received.  In the mean time they will have an appraisal done and decide what the property is worth and if they want to accept the current offer.  If they feel the sales price is too low they will counter back to the buyer with a higher price.  All this takes times.  That is why we say expect at least 120 days.We are short sale experts and if you have questions about the process or if you qualify just call or email us.  We would love to help take this burden off your shoulders.  Many homeowners feel a great deal of shame related to foreclosure or short sales.  The circumstances are usually out of your control so you must choose the easiest  way to solve the problem.  That is where we can give you guidance and help to move you forward to a new life!  Give us a call!

 Foreclosure Is not the only Answer!

If you have missed or are about to miss a payment on your mortgage there are other options than losing your home to foreclosure!  A “Short Sale” could be the solution to your financial problems!  In a short sale the mortgage company accepts less than is owed on the property rather than going through the foreclosure process.  The best part is it doesn’t affect your credit or a security clearance (if you hold one) like a foreclosure does.