Are You Facing Foreclosure?
If you are facing a pending foreclosure, the time to act is NOW before your property goes into foreclosure auction. What options do you have? Your attorney may advise you to file for bankruptcy. While this advice is well-intentioned, this may stop the foreclosure process cold on its track… for some time only. But will this be the end of the problem?
While bankruptcy will buy you some time, the end result is that your house will get auctioned unless you bring your payments current. Which means:
- You will lose your home
- You will have a bankruptcy and a foreclosure on your credit report
Obviously, you will want to avoid this at all costs! We can provide access to legal representation with a prominent real estate attorney. Someone that understands the interworking of mortgage banking and the requirements necessary to sell your home for less than you owe, through a short sale.
You can also try to negotiate a loan modification allowing you a chance to stay in your home. You should speak with your lender directly if you are interested in a loan modification, and never a third party company. The reality is, the majority of people who attempt to work with their bank to modify loans, fail and eventually get foreclosed on. Because of this failure rate we do not suggest or assist with loan modifications. We have a team in place that has successfully helped hundreds of people get out from under their homes and situations. At no cost to you, our team will diligently negotiate a short sale with your lender(s), allowing us to purchase the property at a fair price. CLICK FOR HELP!
In most situations, people have 3 options available to them. The first is to keep the property, and this means making the mortgage payments every month, and making up any past due payments. The second is to short sell. The third is to foreclose (we NEVER recommend a foreclosure). A short sale is a smart alternative to foreclosure that allows a home owner to sell their home on the market. If the price offered is close to the market value and if the home owner has the right advice from a professional short sales agent, then the lending company may allow the sale to go through and ignore the price difference. Although the lending company may be losing a little on their investment, they are also able to avoid the process of foreclosing a house which is something all lending companies strive to do. The home owner is able to sell their home and stay out of the red.
The Three Differences between Short Sale and Foreclosure
1. The biggest difference between a short sale and a foreclosure is that a short sale allows you to start over. While a foreclosure is considered one of the most devastating and stressful financial situations, short sales are the preferred alternative. Your mortgage is considered “paid” which means you are free from any burdens in the future. A foreclosure will show up on your credit reports meaning that potential employees, landlords and credit bureaus can see this big black mark on your record. With a short sale, there is no black mark.
2. In terms of your credit report, a short sale will not be able to wipe the slate clean. If you have missed some payments on your house due to the pre-foreclosure status, then there is nothing you can do about that for now. However, a short sale will not make your credit any worse. Foreclosure, on the other hand, can lower your credit report by 300 points which can have devastating consequences to obtaining loans later in life.
3. Another big difference between short sales and foreclosure is that with a foreclosure, you will not be eligible for a government insured loan for 5 to 7 years. This can seem like a lifetime for families who need the support. In a short sale, we have seen this ineligibility shortened to as little as 12 months!
Call us today for a confidential, no obligation consultation.