Friday, January 24, 2014, AM | Leave Comment
Foreclosure on any owned property can be a difficult experience and can be potentially avoided. The average consumer is most likely not aware of some of the options available to them in such a situation. This article will help to explain some of those options so that people can avoid foreclosing on their home and losing everything they have put into it.
Selling the property
If you know that you are no longer able to keep up the payments on the property and you feel foreclosure looming, you should investigate selling right away. Contact a worthy, local, real estate agent/broker. Not all real estate agents are brokers. Brokers have additional licensing in different areas of real estate, and most are more knowledgeable about the foreclosure process.
Tell your selected broker what your position is right away, regarding your property. Once you are in the foreclosure process, it is much more difficult to sell the property quickly. You want to sell before you get behind on your payments.
Selling the property through a Short Sale
A short sale is just that. Someone comes out short, but in a short sale it is the creditor, (the bank or the mortgage company). They have to agree in order for the short sale to be approved.
You and your lender are both agreeing that you will sell the property for the highest dollar amount that you can get, but it very well may be not enough to pay off the mortgage.
In some states, you may still owe the lender the difference in what you receive as opposed to what you owe. Short sales can be timed. A short sale may affect your credit.
Refinancing the Property
The federal government has instituted several different programs regarding refinancing for economically distressed persons or those whose properties have declined in value due to the mortgage industry economic crisis of the past 5 years.
A “HARP” (Home Affordable Refinance Program) is one; however, there are loan application and refinance fees involved. An FHA Short Refinance is another option for those who owe more on the property than the property is currently worth. Your lender has to agree and will subsequently lower what you owe on your mortgage.
These programs and several others have pending tax implications, and may affect your credit.
Deed in Lieu of Foreclosure
This is essentially where the borrower gives the property back to the lender. However, you would no longer be able to live in the property.
Selling the property by Selling Mortgage Loan
Contact a reputable mortgage note buyer like Amerinote Xchange to find out how you can sell your mortgage note.
You determine what cash you would like out of your property and work with the note buyer to purchase your mortgage note and sell it on the secondary mortgage market.
There are bids on your property and the note buyer will take the best bid. It removes the property owner from the stress of having to sell the property.
If you find yourself in financial trouble as a homeowner, the first thing you want to do if find out your options so that you don’t lose your investment.
These five ways to avoid foreclosing on your home should give the average consumer options to consider in the event that owned property becomes an issue that needs a firm decision.Facebook.com/doable.finance