You Can T Do A Short Sale Without The Lender S Permission

Category: Finance, Real Estate.

In today s real estate market there are a tremendous amount of foreclosures taking place.

What does this mean? In Arizona alone the foreclosure rate is up 566% from this same time last year. Well, it means the, for some inevitable loss of their home. Unless they were properly advised, many home owners now find themselves in unenviable situations. Unfortunately, over the past 3- 4 years loan products that were available were not necessarily the right type of products for the average consumer. The big question is: What is Foreclosure? If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued.

The Answer: This is the legal means that your lender can use to repossess or take back your home. If that happens, you not only lose your home, you may owe an additional amount. So you should avoid foreclosure if possible. Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. The foreclosure downwind begins when your loan payment becomes 16 days overdue. If your first payment becomes 30 days delinquent the assumption is the next month s payment will be delinquent as well, collection attempts begin to be more aggressive. At that point, your mortgage lender will try to contact you to work out a repayment schedule to bring your loan current.

If your payments fall 90 days behind, the lender will likely refer your mortgage to an attorney or other entity that will initiate formal foreclosure proceedings. Effect of a foreclosure on your credit record: Devastating and long- lasting. With a foreclosure, the lender takes possession of the house, and puts the, evicts the tenants property up for sale. It remains on your credit record for at least seven years. Don t worry. Avoid foreclosure if possible.

There is help out there for those that are in foreclosure. During the process, be sure not to avoid the letters from your lender. There are many companies and individuals that will provide education and assistance at no cost. The more time you wait, the harder the situation will become and the more likely it is that you will lose your home. They are in the business of lending money, not owning homes. Believe it or not, lenders do NOT want to foreclose on your home. They will work with you and do everything they can in order to assist you in keeping your home.

Explain your situation. When you first become aware that you are having problems making your payments, call or write to your lender s Loss Mitigation Department without delay. Be prepared to provide them with financial information, such as your monthly income and expenses. Although it may be disheartening, be sure to open all of your mail from your lending company. Without this information, they may not be able to help. The initial mailings should provide information that will help you.

Contact your State Government Housing office. The latter mailings may be legal action that you must be aware. You must know your rights to be successful and each state is different. Gather your lending documents and read them thoroughly as they should explain the process to you as well. Be sure to ask questions. The main thing is to make sure you stay in your home.

During this stressful financial time, it is also very important that you prioritize your spending and look at what other assets you have that may assist you in keeping your family home. If not, you may not qualify for assistance if you abandon your property. Do you have extra cars, stocks or other, jewelry investments that you can sell in order to keep your home? Let s discuss some options that may be available to you. Research all options that will help you in keeping your home. Repayment Plan: You repay what is behind and promise to stay caught up. Forbearance: Forbearance isn t for an indefinite period.

This is usually when you are 16- 30 days late. It might be for one or three or six months, you, and after that ll be expected to make full payments on time. Loan Modification: A loan modification is similar to a refinance: The lender agrees to alter the loan, but with few or no fees. In most cases, you ll be expected to catch up within a year or 18 months. The lender might reduce the interest rate, change the loan from an ARM to a fixed- rate mortgage, or raise the monthly payment by a few dollars so you pay off the entire loan, including the past- due amount, by the loan s original end date. Shore Sale: In a short sale, you sell the house for less than you owe. Deed In Lieu Of Foreclosure: This option often is referred to as a" deed in lieu. " The borrower offers to hand over the deed to the property so the lender can take possession of the house and sell it.

You can t do a short sale without the lender s permission. Pay the real estate commission, taxes and government fees. With a short sale, you make necessary repairs to the house. And give the lender whatever money is left over- - a partial payment. Seek assistance so that you are able to explore all of your options. Again, remember to not procrastinate while going through this stressful time.