- Real Estate
How You Can Stop Foreclosure
stop the foreclosure process
ways you can stop foreclosure
Foreclosure is one of the ugliest words in real estate and for a lot of homeowners something they never considered they would ever experience. Foreclosure is the process of your mortgage lender recouping your real estate because the mortgage is not being paid as outlined in your contract. There is help for anyone that is facing foreclosure.
There are choices when it comes to facing foreclosure, believe it or not. It’s difficult to see a light at the end of the tunnel once foreclosure has been mentioned. These are different resources for any home owner that is facing foreclosure
A short sale is selling a home for less than the actual worth or mortgage amount owed. A home owner can find a buyer for their home that will pay less than the actual mortgage owed on the home and the mortgage lender will accept that amount to pay off the mortgage, even with a mortgage that is worth more than the buyer is offering.
Short sales are more common as foreclosures increase. Do not assume that short sales are a great deal for the buyer. Any buyer that believes the can come into a short sale and have a home for a song and a dance is sadly mistaken.
A buyer will have to submit a bid or offer for a reasonable price. The mortgage lender will have to approve the bid for the short sale to take place. A lender is the in business of making money. Even if they do not make a profit, they will usually want to cut their losses and will accept a short sale offer when reasonable. The seller will not make any money off of the sale. However, they are having their mortgage lender accept the monies for the mortgage in full and the lender will write off any difference between the mortgage and the selling price.
A short sale can be a great deal for all involved if the price is right. This is a great way to get out from under foreclosure. A short sale will stop the foreclosure process.
Loan modification is something that has been in the news for a couple of years also. The federal government has really pushed for lenders to modify home owner’s mortgages in order to save homes from foreclosure.
If you have your loan modification approved and get a mortgage payment that you can afford you can stop the foreclosure process. The obstacle for loan modification is coming to a compromise for something the home owner and the lender can both live with.
Some lenders may agree to add the late payments to the end of the mortgage for home owners that are seeking loan modification. If you haven’t asked your lender for one yet don’t hesitate to try this option to stop foreclosure.
Sell your house
Selling you home is certainly an option to stop foreclosure. The issue with selling your home is the number of homes already on the market. There is an abundance of homes in the marketplace today which is causing the phenomenon known as a buyers’ market.
A buyers’ market in real estate means the buyers have the power. Supply and demand have dictated that the demand is less than the supply and they will set the price and the terms for buying which doesn’t leave a lot of wiggle room for home owners that find they may need a certain dollar amount at sale to meet the demands of the mortgage lender.
There are tons of houses that have been on the market for months or even a year or more. Selling your home is certainly a possibility, but be aware of the obstacles that are involved. It may be more easily said than done in today’s marketplace.
As a last resort a number of home owners confronting foreclosure have considered bankruptcy. This is a prospect to stop foreclosure that does have a variety of consequences. Visit with an attorney concerning bankruptcy and what it means specifically for you and your foreclosure process.
Tons of homeowners that have chosen bankruptcy have found that it will only delay the inevitable to stop foreclosure.
These are options available for stopping the foreclosure process with your mortgage lender. Of the prospects outlined here some may be better than others for your individual situation. Weigh the pros and cons of each and decide which one will suit your needs best.
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