The Simple Truth…..Foreclosure
If you are behind in your payments, foreclosure is not the only option. Below are a few other ways to address the growing problem of being ‘upside down in your mortgage’ and/or being behind in your mortgage payments. It is most important to obtain the professional assistance of a realtor as soon as possible to determine the solution that’s right for you. Many lenders begin the foreclosure process after 2 or 3 missed payments.
No one likes to be in this position, neither the homeowner nor the lender. This is where we come in. Our real estate professionals can make the calls you may be uncomfortable with in order to negotiate a mutually satisfying agreement for both parties.
Foreclosure should only be a last resort. Every effort you make to negotiate with your lender can help your credit and financial future. A short sale in most cases will have far less of an impact on a homeowner’s credit record and will allow for a home purchase after 2 years versus 3-5 for foreclosure.
Renting your property out temporarily is a potential option if you can move into a more affordable space until your circumstances change.
A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor.
A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower ) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.
Foreclosure is the legal and professional proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption.
Advance Realty can help select the right option for you.
