Options to Foreclosure-
You have options to foreclosure, when things get tough…
Many homeowners are now faced with the fact that their mortgage has become unaffordable. Whether it’s because of the adjustment of an option arm, unemployment or some other circumstance that has affected cash flow, there are now alternatives and options to an inevitable foreclosure with eventual eviction.
If the homeowner’s goal is to keep the home, the first option to explore is a loan modification. A loan modification is an agreement between the homeowner and their lender to modify the terms of the existing loan agreement. A homeowner must qualify for the loan modification and not all homeowners will be approved.
If the homeowner wants to get out of the house, there are two options- a short sale and a deed in lieu. A short sale is real estate transaction whereby the current lender (s) agree to allow the owner to sell the property for an amount less than the current mortgage. A homeowner must qualify for the short sale- demonstrate that they can no longer make their payments and they are insolvent.
The short sale can actually be a tremendous financial relief as the homeowner no longer has to stress about paying the huge mortgage.
In addition to helping a homeowner avoid foreclosure it can help the homeowner save their credit history. While any late payments are reported to the credit bureau the homeowner will not have a foreclosure reported if the property was not foreclosed. The transaction may be reported as “settled for less” and the damage to a credit score is less than if a foreclosure was reported. In addition, the homeowner may be eligible to purchase a property again in as little as two years OR LESS with some programs if credit has been re-established. Lastly, a foreclosure on a credit report may affect the ability to obtain employment or security clearance.
Short sales actually allow the homeowner to be in a bit of control as well. When a homeowner can no longer afford to make their mortgage payments a foreclosure is inevitable if action is not taken. If a loan modification is not a choice, the short sale will help in speeding up the unfortunate financial turmoil. Since the process is quicker than a foreclosure, it will help the homeowner get on with their lives.
A deed in lieu of foreclosure is an instrument which conveys title to the property back to the lender and the homeowner can walk away. The lender will typically require the home be listed for sale for a minimum of 90 days prior to offering a deed in lieu.
Any of these options may stall the foreclosure process, but it is necessary to act quickly. Call us now at 800-546-2289 For a FREE evaluation of your current situation. If you are browsing after hours, simply request a call back by submitting one of the short forms on the right side of the page, and an experienced, licensed professional will contact you to review your options ASAP.
Why Call Midas Realty Group?
Many loan officers and Realtors say they know a lot about short sales, but don’t know how to the short sale process works or even why a short sale is a better alternative to a foreclosure. A short sale is an extremely important transaction that should be handled by a trained and experienced professional. By achieving the designation of CDPE (Certified Distressed Property Expert) and as a Realtor® that has successfully closed Orange County short sales, as well as short sales in the counties of Riverside, San Diego, Los Angeles, and San Bernardino, our broker has the training and the experience you need in order to guide you through this process. Your first step is a phone call to discuss your situation and to evaluate your available options. You may complete the information to the right and an experienced short sale negotiator will contact you to discuss your options, or you may call us now 800-546-2289 to discuss your unique situation.