Foreclosures
Not Being Able To Pay Your Mortgage Is Scary
Have you experienced a job loss, cut back in work hours, divorce, death of a family member, or any other challenge that is hampering your ability to make your monthly payments? Have you been impacted by Covid-19 in some way and can no longer afford your home or investment property payment? Is your mortgage deferral period ending and you can’t make your payments when they need to resume? I can relate – had 4 businesses outside of the real estate industry before Covid came. My supply chain was abruptly shut down and it remained closed for 9 months before I had to close the company, sell all the assets and most heartbreaking, laying off all my employees. It was one of the most stressful times in my life. I didn’t know how it was going to end, and I struggled with paying the escalating bills with no sales coming in. Quite frankly, it sucked.
I survived it, and you will too. Let me help you avoid foreclosure. You DO have options. Don’t lose one of your biggest investments and let your credit be ruined for the next 7 years at the same time! The real estate market is very strong – there is a good possibility that you could sell you house, pay off your debt to the lender, and avoid foreclosure. There might even be money left for you to start over with.
Talk to your lender ASAP and see if there are any forbearance programs or loan modifications that can be worked out for you. Your lender does not want to see you lose your home, or incur the costs of foreclosure. They will typically work with you to find a solution. When appropriate, lenders will accept a deed in lieu of foreclosure, meaning that you turn over the deed and foreclosure is avoided. Perhaps you have exhausted those options and you are just ready to move on to what’s next. You want to sell your property to postpone the trustee sale, collect some additional cash and avoid a foreclosure in the process. Please call me and I can help you through the process.
What Is a Short Sale?
A short sale occurs when the lender agrees to take less than the full amount required to pay off existing loans in full because the outstanding loan balance is greater than the proceeds realized from the sale of the property.
Most real estate has appreciated so much in the last few years that there are very few houses that are “upside down” on their loans. Of course, your lender would prefer that you stay in your home and continue making payments, but selling it and getting the “bad asset” off their books is frequently their next favorite choice. Many lenders will negotiate short sale terms that are quite favorable to you, oftentimes allowing you to walk away for free and with zero delinquency judgments.
If you’re considering a real estate short sale there are things you need to know before speaking to your lender. Please give me a call!
A successful no cost short sale with zero deficiency judgments looming in your future can be possible if you work with an expert team to get it done.
Will I Qualify For A Short Sale?
Because home sales have been so strong, it is doubtful that you will owe more on your house than it is worth. I can give you a comprehensive property value report designed to determine your property’s sales price value – the same info your lender will want.
Is Your Mortgage Currently In Default or Are You Concerned That It Soon Will Be?
It used to be that lenders would not even consider a loan modification, deed in lieu or short sale if your payments were current, but not anymore. Realizing that other factors contribute to a potential default, most lenders are eager to head off future problems pro-actively.
Many lenders no longer require that you are late on your payments, however you must be able to convince them with your hardship letter and financial records that you’re concerned about your ability to continue making payments.
You DO have options - the biggest mistake you can make is doing nothing at all…
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