Â Stopping foreclosure may be high on your list of personal priorities, and if you look at the news this week, youâ€™ll see stories about the decline in the number of foreclosures. You might think that, combined with news about consumer confidence and consumer spending, the recession may have reached the bottom and weâ€™re on our way back up. Not so.
Mortgage lenders instituted a self-imposed moratorium on foreclosures while they waited to see what assistance the Obama administration would devise. Once the President announced his plans, however, mortgage lenders began re-issuing Notice-of-Default statements and Notice of Trustee Sale statements at an alarming rate.
These notices are just the first step in the official foreclosure process, and in California alone, tens of thousands of homeowners received these notices in March. The foreclosure crisis is far from over and in fact, is now shifting into high gear. These notices are also being sent to homeowners in all other states, and will fuel a new wave of foreclosures that is expected to dwarf the current foreclosure crisis in the next two to three years.
The federal plan for stopping foreclosures was designed to save homeowners who are underwater on their mortgages or who are in danger of default, but it doesnâ€™t reach into the populations that are most likely to experience foreclosure. The majority of subprime mortgages that will default already have. Alt-A mortgages are defaulting now, but nothing in the Obama plan will help a homeowner who has lost his or her job, or has experienced a downward shift in income that prevents them from making the payments on their homes.
If you need something thatâ€™s effective in stopping foreclosure in its tracks, consider a short sale. With a short sale, you can sell the house for its market value and negotiate with the lender to forgive the remaining debt. A short sale is your best alternative for stopping foreclosure. The short sale can help preserve your credit rating and get you back on track while avoiding the catastrophic effects of a foreclosure or bankruptcy on your credit report.
Blue Group Associates highly experienced short sale negotiators can help you put together a viable short sale plan that will satisfy the lender and prevent an unnecessary foreclosure from landing on your credit report. Contact us today and put our professional short sale negotiators to work on stopping foreclosure on your home.