Tuesday, April 3, 2007

Real estate short sale: More tips to stop foreclosure

There are some helpful tips today in the Orange County Register for homeowners who are searching for ways to catch up on their mortgage payments and to avoid foreclosure.
Here’s the quick list:
Talk to your lender as soon as possible
Get financial counseling
Consider selling before foreclosure is final
The overriding theme of the article, which was written with the help of industry experts, is to act fast.
We couldn’t agree more — the quicker a distressed homeowner reaches out for assistance, the more options he or she will have from which to choose.
And, if for some reason a resolution cannot be agreed upon to save the home, at least these homeowners will have more time to put their properties on the market with the hopes that buyers come along to bail them out.
Filing for bankruptcy is the absolute last option, as well as one of the worst.
Consider this:
“Filing for bankruptcy isn’t a good option. Bankruptcy will not only ruin your credit but, depending on whether you file Chapter 7 or Chapter 11, the lender may still be able to foreclose or the court may order the sale of your home.”
The article also touches on a non-conventional strategy called the short sale. Essentially, this means that the house is sold for less than the actual loan amount.
However, the lender must agree to the terms of the price beforehand and be willing to accept the discounted offer.
Lenders sometimes do this to keep foreclosures off their books and to ensure that more money is not lost while the home is wasting away on the market.
In short, when it comes to foreclosure there’s no silver bullet solution that cures all situations. Fortunately, there are programs, services and options available that help distressed homeowners keep the keys to their front doors.
Therefore, alwayss remember that it is often a race against the clock — give yourself the time you need to arrive at the resolution that best fits your needs.