Options to Foreclosure include Loan Modification with your lender, Short Sale, Deed in Lieu of Foreclosure and Bankruptcy. Â If you have been denied a loan modification or failed a loan modification a Short Sale is your best solution to Foreclsoure.
Foreclosure short sales occur when the homeowners or current home occupants cannot pay their mortgage.Â There is no foreseeable solution in the near future.Â They will lose their home.Â It is honestly just a matter of when.Â To save their credit score and to avoid costly and lengthy foreclosure proceedings for the mortgage lender, a short sale is decided on.Â The mortgage lender agrees to sell for less than the outstanding mortgage debt.Â The lender will take a loss, but they still get some of their money and avoid foreclosure proceedings.
Loan reinstatement.Â With todayâ€™s economy, many individuals are finding themselves in the unemployment line.Â In some areas of the United States, it is difficult to find a job.Â It can take a year or more.Â In other areas, an unemployed person can find a job and be working in as little as a few weeks or months.Â Donâ€™t avoid, but proceed with caution with individuals who are only facing temporary hardships.Â When dealing with for sale by owner homes, the owner can change their mind at any time before the final closing.Â If the current home occupant finds employment or gets their mortgage lender to work with them during these tough, but temporary times, you may be left out in the cold.
Loan modification.Â This shouldnâ€™t be a major issue for you as a potential homebuyer.Â Most homeowners approach lenders with this option right from the start.Â A loan modification involves readjusting the interest rate, the monthly payments, or the overall term of the loan.Â Many homeowners, unless unemployed, can save their homes from foreclosure with loan modifications.Â If you want to do a good deed, offer the suggestion.Â If you want to make a profit, keep this to yourself.Â After all, the homeowner should already know about loan modifications.Â If not, it is their loss and your gain.
Foreclosure short sales.Â As previously stated, the decision to short sell is made by the mortgage lender and in agreement with the current homeowner or occupants.Â This is considered a last ditch attempt to avoid foreclosure.Â In most cases, short sales are a great way to profit from the real estate market.Â You must proceed with caution though.Â If a new homeowner just acquired a mortgage within the last year, they owe a significant amount on their mortgage.Â Always compare the homeâ€™s appraised value with the short sale selling price.Â Homes can depreciate.Â Remember your goal is to get a good deal and possibly resell for a profit.
As you can see, there are ways that a homeowner can avoid foreclosure.Â If you are facing
Foreclosure click here.....Â AndriesTeam.RealtyLearning.comÂ website to get more answers and solutions available to you. Â If you have any other questions or are considering selling your home
please let us know! Â We are here to help!
Chris & Amy Andries
Certified Short Sale & Property in Foreclosure Specialists!