Foreclosure, Notice of Default, Short Sale, Strategic Default, Loss Mitigation, Loan Modification.....What does it all mean? |
Are you or someone you know facing FORECLOSURE?
You May Have A Better Way Out!
There are countless hardships that can turn home ownership from a joy into a burden. The loss of a job, medical bills, or an unexpected hike in monthly payments can all make a mortgage unaffordable. But ignoring the bills will not make them go away, it will only make things worse.
If you or someone you know needs help, there are approaches that can help, but you may not be familiar with them. One of these is a “short sale.”
In an approved short sale, the lender agrees to accept less than is owed for the property, and the homeowner is relieved of the debt. A lender may be willing to do this because it spares a lot of hassle and expense involved in executing a foreclosure. And typically, a short sale does far less damage to the homeowner’s credit than a foreclosure does.
If you would like to explore the possibility of a short sale for your property, avoid foreclosure, and potentially save your credit rating, please email me at leawilliams21@gmail.com or call me at 208-661-8368 for a Confidential, no cost or obligation, consultation about your specific situation. I am a Certified short sale agent with the Certified Distressd Property Expert (CDPE) and Short Sale and Foreclosure Resource (SFR) designations along with a top notch team in place to successfully Short Sale your home if that is what you choose to do. I can help.
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EXPLORE ALL YOUR OPTIONS!
Alternatives to Foreclosure
You may be facing foreclosure…so what are your options?!? Try to look at the situation more from a financial standpoint rather than an emotional standpoint. This way you can more successfully analyze which option might best suit your needs and desires to move you towards resolving your financial difficulty. One very important thing to remember: Time is of the essence. Take time to think through your situation and make a decision. Then, take action right away so you have enough time to complete the solution you choose.
Options When Facing Foreclosure
1. Do Nothing – If a homeowner does nothing, they most likely will lose their home at foreclosure auction. Future Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option.
2. Payoff/Refinance – Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home.
3. Reinstatement- Pay the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
4. Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.
5. Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.
6. Partial Claim – A loan from the lender for a 2nd loan to include back payments, costs and fees.
7. Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened.
8. Bankruptcy – This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney.
--Chapter 7 (Liquidation) To completely settle personal debt.
--Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.
--Chapter 11 (Business Reorganization) A business debt solution.
9. Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid) the homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale.
10. Short Sale – Also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value. You receive NO MONEY unless it is an owner occupied home and you qualify for the HAMP $3000 payment. You do not have to pay commissions as that is negotiated by your Realtor for the bank to pay this fee. It is key to use an experience trained successful Short sale agent to help you through the process.
CONTACT ME AT 208-661-8368
and I can help you with your options and solutions!
You should also discuss all your options with your tax accountant and attorney.
I look forward to hearing from you and getting started on your path to freedom!
Lea Williams, Realtor, CDPE, SRF, RSPS
Tomlinson Sotheby's Realty
1400 Northwood Center Court, Suite 200
Coeur d'Alene, ID 83814
208-661-8368 leawilliams21@gmail.com