We are undoubtedly living in uncertain times. At the point when an individual falls into financial times is the time to start working on how to get out of it. Unfortunately, most people allow their emotions to take over. Rather than wait for things to happen, it is best that the borrower take a more proactive approach. No one needs the sheriff to set them out & make a bad situation worse than it needs to be. It is best to keep the line of communications open with the lender & not disregard letters or calls concerning your loan installments. Connect with the lender and clarify your circumstance, as they might be likely to work with you. It is very important to note that most lenders do not want to foreclose.
There are frequently a number of options to a homeowner. Such options may include:
- Reconstructing the loan by adding the missed payments to the end of the loan & artificially catching the borrow up if they can start making payments.
- Refinancing the loan with more favorable terms.
- Selling the home & saving the borrowers credit from a foreclosure
a. If the borrower has equity in the home, they may be able to save that & walk away with cash at closing
b. If the borrower owes more than the value of the house, a good real estate professional can help negotiate a “short sale” where the shortage is either forgiven or “gifted” to the borrower
- Negotiate a cash for keys – This allows the homeowner to vacate on their terms and possibly get some funds from owner that will help them to relocate rather than be evicted
It is best to be straightforward with your lender and work with them to analyze the alternatives available to avoid foreclosure. Timing is very important here - The sooner you contact an experienced real estate professional, the more options that will be available to you.
Beware that there are unscrupulous organizations out there that charge for “helping people facing foreclosure”. There are also reputable agencies that can assist at little or no expense to homeowners. Whenever possible referrals to not-for-profit housing agencies are also made.
So, don't get stressed, pick up the phone and communicate directly with Lender or seek the professional assistance of an experienced real estate professional. Always remember that the professionals at Crown Realty Experts are here to help you! We have negotiated dozens of situations that work out for the best for the homeowner.