Aside from coming current on your mortgage with your Lender.
These are the 5 alternatives to avoid a foreclosure:
1. Bankruptcy: You need to hire a bankruptcy attorney for legal advice.
2. Loan Modification: This option is for homeowners who want to keep their home. A homeowner must negotiate the terms of the modification with their Lender.
3. Deed in Lieu of Foreclosure: This is the process of the homeowner conveying all the interests of the home to the Lender to satisfy the loan that is in default and avoid the foreclosure.
4. Loan Forbearance: The loan payments are postponed or reduced but interest continues to accrue during the period of forbearance. The terms must be negotiated with your Lender.
5. Short Sale: Is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than amount owed on the debt, a sale of the property can be accomplished. This option has several benefits to a homeowner. In order to qualify for a Short Sale with the Lender the homeowner must have a financial hardship. Examples of financial hardships are loss of employment, Covid-19, reduction of income, divorce, death in family, bankruptcy, job transfer, major medical expenses, and high debt to income ratios.
Our team specializes and helps homeowners for free with processing a Short Sale. We will help you identify the financial hardship and will assist with instructions on how to prepare a hardship letter.
There are 10 Short Sale benefits to homeowners with a financial hardship.
1. The homeowner avoids foreclosure. A foreclosure damages a borrower's credit up to 10 years in some cases. Lenders will not approve a borrower for a new mortgage until the foreclosure clears from the credit.
2. A Short Sale affects a borrower's credit for up to 2 years. After the 2 years a borrower will be approved by Lenders and can buy a new home.
3. During a Short Sale some Lenders offer the borrowers relocation assistance.
4. The Lender pays the Realtors commissions. The process and negotiations are FREE to the homeowner.
5. The homeowner receives FREE assistance from our experienced Short Sale Realtor and Short Sale negotiator.
6. ALL debts are settled or renegotiated and have less impact on the borrowers credit report.
7. A Short Sale offers borrowers a clean slate. The borrowers can work on future goals after the Short Sale.
8. The Short Sale process takes approximately 3-6 months to close. This gives borrowers the time to relocate their family.
9. During the Short Sale process the borrowers can save money while the process finalizes and closes.
10. Borrowers can live rent free while the Short Sale process closes.