Foreclosure homes are houses which borrowers still owe money on but can no longer afford to maintain their payments. Once borrowers become 31 days delinquent on their mortgage note lenders can initiate pre-foreclosure and force the borrower out of their home. Although the process takes several months to complete, foreclosure is a stressful event that will darken your credit history for up to a decade.
Once banks take possession of foreclosure homes they attempt to sell them through foreclosure auctions. More often than not, foreclosed homes require repairs and renovations. It is not uncommon for previous homeowners to trash the place when they are evicted.
This is a very bad choice because lenders can obtain a deficiency judgment against the homeowner and pursue them for the difference between the balance owed on their mortgage loan and the price it sells for at auction. If the borrower inflicts substantial damage, it will come back to haunt them in the end.
Individuals who are facing foreclosure might be able to obtain short sale approval from their lender. Short sales are rather complex, but in essence involve convincing the lender to accept less than is owed on the loan.
Why would lenders agree to accept less? Because short sales typically cost less than foreclosure. Real estate experts state the average foreclosure costs banks around $60,000 and take more than a year to complete. Additionally, foreclosure homes are considered as non-performing loans. When banks are holding properties that do not produce income their ability to borrow money from the Fed is reduced.
Since banks make money by lending money, they must be able to keep their line of credit open with the Federal Reserve Bank. Otherwise, they will go out of business. As you know, we are already witnessing the fallout caused by subprime lending and the subsequent increase in foreclosures and bank failures.
If you are facing foreclosure and think a short sale might solve your problems, I have written a concise eBook course which is available at www.ShortSaleHardshipLetter.com. It is important to understand that banks only accept about one out of ten short sale requests. If you want to improve your chances of approval ten-fold, go to the website and order the ebook.
If you have already obtained short sale approval and need to sell your house fast, I might be able to connect you with a qualified buyer. Feel free to send me information about your foreclosure property via the "we buy houses" form.
I buy houses in southern California, Washington, Nevada and Arizona. I also have a network of investors who are always on the lookout for great real estate deals. Unfortunately, there is an abundance of foreclosure homes. Try as we might, we can't buy all of the distressed properties. So, don't delay. Go submit your property right now. You have nothing to lose and everything to gain.
Published on March 25, 2009 at 03:29 AM | Comments: 1
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