If you need to avoid foreclosure, you don't have any time to waste. Although lenders are doing their best to help financially-strapped borrowers keep their house, there are only so many options available. Unless you have the financial means to cure mortgage arrearages and stay on track, you might not be able to stop the foreclosure process.
There are steps you can take to avoid foreclosure, but you must take immediate action. If you haven't already done so, now is the time to contact your mortgage lender. The longer you procrastinate, the harder it will be to convince your lender to work with you.
When borrowers become delinquent on their mortgage note, the bank turns their account over to the loss mitigation department. A loss mitigator is assigned to invoke actions to collect monies owed on the loan.
Lenders generally begin by sending a letter reminding you your payment is late. This is the best time to respond, even if you don't have the money to pay. By being proactive, you are demonstrating that you are aware of the problem and need help.
If you ignore the letter, the lender will send a pre-foreclosure notice. Also known as Lis Pendens, pre-foreclosure grants you a little time to devise a loan modification which permanently alters the terms of your mortgage note.
Loan modifications usually require borrowers to pay mortgage arrearages prior to changing terms of the loan. Some lenders will allow borrowers to pay a portion of the delinquent amount. Others will roll the past due payments to the end of the loan.
In some cases, borrowers end up paying a higher monthly payment when their mortgage note is modified. If you are struggling to make your mortgage payment, modifying your loan to include a higher payment doesn't make good financial sense.
When borrowers are unable to cure arrearages or qualify for a loan modification, their lender might suggest entering into a short sale agreement. Short sales do not allow borrowers to keep their home, but it does help them avoid foreclosure.
Lenders will allow borrowers to sell their home for less than they owe on their mortgage loan. The borrower must locate a qualified buyer within a set period of time. Banks usually require the property to be listed through a realtor.
Considering the housing market is in the worst slump in history, locating a buyer is no easy feat. The secret to selling a short sale home quickly is to work with a private investor. Investors are always on the look-out for good real estate deals. Many buy houses with cash in order to obtain additional bargaining leverage and expedite closing the deal.
Short sale transactions are complex and time-consuming. Since banks are taking a loss on the property, they require extensive documentation proving the borrower does not possess the financial means to make good on the loan.
In order to walk away from your home and avoid foreclosure, you're going to have to jump through a few hoops. My team of short sale specialists has completed nearly 400 successful short sale transactions. We know what information loss mitigators want to see. We know what forms need to be filed. We know hoop-jumping shortcuts that can save you time and money.
I am currently accepting a limited number of people who want to stop foreclosure by entering into a short sale. If you need to sell your house quickly and are willing to follow my guidance, I will review your property at no cost and inform you of available options.
The only thing you need to do is submit information about your property via the "we buy houses" form. Upon receipt of your information, one of our short sale specialists will contact you to further discuss your situation.
Published on June 15, 2009 at 03:01 AM | Comments: 1
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