The process of foreclosure can be rapid or lengthy and varies from state to state. Other options such as refinancing, short sales, alternate financing, temporary arrangements with the lender, strategic walk-a-ways, stopping the sheriff sale, bankruptcies, emergency funds (EHLP, HAFA, HOPE NOW, HAMP), cash for keys, deed in leiu, legal matters such as predatory lending, RESPA and TILA violations, forensic loan audits and litigation may present homeowners with leverag to avoid foreclosure and protect their assets.
Why would a short sale be an alternative over a foreclosure, but not always a good solution?
A short sale is the sale of a house for less than what the owner owes on the mortgage. If you owe more than your house is worth and can’t afford your payments, you might be able to sell it for less than you owe. If the lender agrees to a short sale, the rest of the homeowner’s debt can be forgiven this is where homeowners must get legal advise and take added precautions, especially in event of a second mortgage or line of credit. Lenders sometimes agree to the procedure in order to take a small loss and avoid the lengthy and costly foreclosure process. While there are some significant negative consequences to a short sale, an ever-increasing number of properties are being advertised with that label. While it may seem surprising that lenders would agree to accept less than what they are owed, they benefit in numerous ways by not having to go through the protracted process of foreclosing on the borrower.
- The seller can be released from the mortgage liability without facing bankruptcy.
- The seller has no cost to the transaction.
- The bank pays all closing costs and commissions.
- The seller is in control of the sale of their home.
- The seller benefits on their credit vs foreclosure.
- The seller can be in the position to buy a home again in less than 3 years.
- The seller can receive $3000.00 in moving expense from participating lenders.
- The buyer gets the home at a reduced price.
- The lender agrees to a loss it considers minimal without going
through a foreclosure and being saddled with an unsalable property.As a Minnesota Realtor Peg encourages Homeowners to really investigate alternative options such as a forced modification or litigation that has been proven less costly then losing your home. If you consider the cost of becoming a renter:
1.The stress of up rooting your family.
2.The cost of relocating ( you’ll need first and last months rent and damage deposit along with the cost and stress just to move your belongings and relocate).
3. Ask your self and investigate what would rent cost monthly to accommodate my families needs? Remember rent like everything else the cost will rise when in demand.
4. Remember once in the rental market you have lost, your home, your security of your fixed monthly payment, your home owner tax deduction along with the many reasons and amenities that home fit your needs.Every foreclosure situation is different and is in need of a blueprint to a soft landing a short sale may be a last resort, If it is possible we may create the opportunity for you to stay in your home for close to the same amount of a monthly payment as renting what choice would you consider?
As a Minnesota Realtor Peg is more concerned in seeing clients and customers and families strategically stay in their homes. Home owners need to seek out and investigate all options so they can make a informative decision that is life changing to a soft landing, you may discover you can remain in your home or if it is more feasible to walk away or to sell your home in a short sale. Peg works with a team of foreclosure specialists: lawyers, accountants, realtor’s and foreclosure consultant who sit down with you and work as a team to help you with a blueprint to a soft landing which in return becomes more of a benefit to you the client and customer not an individual realtor, lawyer or the bank.
If you have worked with your lender, the lost medication departments or customer service, made trail payments, been denied a loan modification and other modification entities, you’ll find on your own or without leverage or legal help it is and can be extremely frustrating and more times then not the modification you are being offered has disappointing terms. Our foreclosure team may find leverage to help you an your family.
For More Information
Peg Crumpton has many years of experience dealing with foreclosures, bankruptcies, short sales, forensic loan audits and loan modifications with cutting edge Information and free consultation on what you need to know about solutions to: foreclosures, loan audits, under water mortgages, stopping a sheriff sale, loan modifications, modification denied, bankruptcies, repairing your credit and protecting your assets.
“ITS ALL ABOUT THE RISE AND FALL OF THE AMERICAN DREAM”
For more information Contact Peg for a free, no obligation consultation.
