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10 Options to rescue you from the brink of foreclosure.

On the edge of losing your Tulsa home to Foreclosure? Here are 10 Options to rescue you from the brink of foreclosure.

On the Edge of Losing Your Home to Foreclosure?

Click here to download a flyer and read about 10 options to rescue you (or someone you know) from the brink of foreclosure.

Homeowners having financial difficulties typically struggle to make their mortgage payments. Often they mistakenly believe they have no options other than to allow the bank to foreclose on their home. Nothing could be further from the truth.

There are at least ten different alternatives to foreclosure. Here is a list of options for homeowners:

  • Short Sale
  • Reinstatement
  • Forbearance or Repayment Plan
  • Mortgage Modification
  • Rent the Property
  • Deed in Lieu of Foreclosure
  • Bankruptcy
  • Refinance
  • Servicemembers Civil Relief Act (SCRA) (for military personnel only)
  • Sell the Property

Slipping toward foreclosure can lead to feelings of anxiety, depression, and loss of self-esteem. Don’t give up.

There are options available to help millions of homeowners rescue themselves from the brink.

Since it is crucial to act before a foreclosure takes place, now is the most important time for you to review the following options and solutions.

As a Certified Distressed Property Expert (CDPE), I am trained in assessing all foreclosure alternatives and pursuing the best solution for your own financial situation.

  1. Short Sale

    A short sale allows the homeowner to avoid foreclosure, minimize financial damage and move on from a burdensome, unaffordable mortgage.

    In many cases, a short sale allows the borrower to qualify for a new mortgage in just 24 months, as opposed to five years or more after a foreclosure.

    A trained real estate agent can negotiate a short sale with your lender if you have three qualifications.

    • First, you must show some type of financial hardship.
    • Second, you must have a monthly shortfall, meaning your monthly expenses are greater than your monthly income.
    • Finally, you need to prove that your debts are greater than the value of your assets (certain investments, property, etc.).
  2. Reinstatement

    A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult for homeowners to achieve. The homeowner simply pays the total amount past due (including late fees) to the lender.

    This solution does not require the lender’s approval and will “reinstate” a mortgage up to the day before the foreclosure sale.

  3. Forbearance or Repayment Plan

    A forbearance or repayment plan involves negotiating with the mortgage company to allow the homeowner to repay back-payments over a period of time.

    The homeowner typically makes current mortgage payments in addition to a portion of the back-payments owed. This option requires lender approval.

  4. Mortgage Modification

    A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these.

    These changes require lender approval and typically result in a lower payment for the homeowner and a more affordable mortgage.

  5. Rent the Property

    This option does not require lender approval, but does require the homeowner’s ability to rent the house for enough money to cover the monthly mortgage payment.

    It is important to remember that there may be unexpected costs associated with the maintenance of a rental property in addition to the monthly mortgage payments. Homeowners should take this into consideration when deciding whether this option will work for them.

  6. Deed in Lieu of Foreclosure

    Also known as a “friendly foreclosure,” a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process.

    Lender approval is required for this option, and the homeowner must also vacate the property.

    A Deed in lieu can potentially lessen the damage to a credit score and future loan eligibility, and sometimes the lender will forgo their right to pursue a deficiency judgment, meaning the homeowner will not be responsible for further payments.

  7. Bankruptcy

    Many have considered and marketed bankruptcy as a “foreclosure solution,” but this is only true in some states and situations.

    This does not require lender approval, but you must have non-mortgage debts that you claim as a hardship.

    Entering bankruptcy can be a risky and costly process. Be sure to seek the advice of a qualified bankruptcy attorney when pursuing this as an option.

  8. Refinance

    As opposed to mortgage modification, refinancing means you will be acquiring a new loan based on your current credit standing.

    If you have already missed mortgage payments, your credit score may make it difficult to find a loan with cheaper payments.

  9. Servicemembers Civil Relief Act (SCRA)

    (for Military personnel only)
    If a member of the military is experiencing financial distress due to deployment—and that person can show that the debt was entered into prior to deployment—he or she may qualify for relief under the Servicemembers Civil Relief Act.

    The American Bar Association has a network of attorneys that will work with servicemembers to help qualify them for this relief.

  10. Sell the Property

    Homeowners with sufficient equity can list their property with a qualified agent who understands the foreclosure process in their area.

    Unfortunately, many homeowners in today’s market have experienced a decline in home value and may owe more than what the home is worth.

Pull Yourself Back From the Brink

If you are on the edge, you have no time to waste. Call me today; I’m here to lend a hand.

Place Your Confidence in CDPE

With the right assistance, the stress of facing foreclosure becomes manageable. CDPE- designated agents have received the knowledge and training necessary to assess all possible foreclosure alternatives and pursue homeowners’ best options.

A CDPE- designated agent attends several days of intensive, thorough training on foreclosure avoidance and how to negotiate short sales efficiently and ethically. The highly regarded CDPE logo means you are working with the most informed, up-to- date resource available.

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Perhaps you may want to consider selling your farm, ranch, or midtown Tulsa home now while there are many buyers out in force taking advantage of record-breaking low mortgage rates.

Call Debbie Solano today at 918-724-8201 to list your midtown Tulsa home.

Get Shortlink: https://tulsashortsaleagents.com/?p=311

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Copyright© 2013 by Debbie Solano — ALL RIGHTS RESERVED — Tulsa Short Sale Agents — On the Edge of Losing Your Home to Foreclosure?

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What is a Short Sale?

A short sale is one among many strategies to avoid foreclosure.  For many homeowners it is a last ditch effort to sell a house at market value before it goes to sheriff sale.  It helps the seller stay out of foreclosure while the buyer gets a home that is priced by a motivated seller at a price point at or below market value. 

Usually a short sale cannot be negotiated until there is a contract to purchase the home.  Banks usually will not negotiate a short sale unless the seller has missed a payment or two.

A short sale is often seen

  1. in situations where the seller has not lived in the home long enough to have built up much equity,
  2. or in situations where the seller financed the home without a large down payment,
  3.  or in situations where the seller has taken out a second mortgage and the “drive-by appraisal” may have been somewhat inflated.  

Whatever the cause, in a short sale the homeowner owes more on the house than he can hope to sell the house for, especially after paying closing costs.  In lieu of a short sale, a seller can opt to take a check to closing or work out some kind of a payment plan with his lender in order to be able to sell the house and avoid foreclosure. 

In a short sale situation the buyer shops for a home and gets loan approval just as when purchasing any other house.  The seller negotiates the best deal possible.  Usually the seller has already given up and doesn’t care how much the house is sold for, as long as it is enough for the bank to approve the deal.  The buyer and seller both sign an addendum which amends the contract so that the bank will have a bit of time to approve the purchase contract.  Then everybody waits and waits and waits.

 There is great disparity between the spirit, philosophy, theory, and intent of a short sale on the one hand, and the reality and practice of short sales, on the other hand.  The reality is that the banks can make more money if they let HUD, Fannie, and Freddie take the house back, and so the banks have been reluctant to help out the homeowners by negotiating with the realtors.  It’s just too much trouble for the banks, and so they take their sweet time and frustrate everyone.  

While the banks are dawdling, the buyers get squirrelly and start looking at other houses.  In the end, 85% of buyers back out before the bank finally approves the deal.    

Most realtors have been there and done that, but have refused to buy the tee shirt.  Many have sworn never to get involved in another short sale again.  Why?  Short sales are a lot of work and provide little satisfaction or profit.  Most of us doing short sales feel like we are throwing the proverbial star fish back into the sea.  When we are successful in closing a short sale, all parties involved can feel joy at having helped a family avoid foreclosure and can truthfully say, “It made a difference for that one family.” 

 Unfortunately the now famous October bailout by the federal government has only accelerated the foreclosure of many homes in Tulsa County.  I could give you many ugly examples to illustrate this statement.
   

The bailout has assured that the banks were taken care of, but unfortunaely home owners already in the foreclosure process have been shown no mercy.  The banks have had no motivation to help homeowners because the loans had been guaranteed or insured by the government. 
 

In my experience the banks that held their own paper without government involvement have been much easier to negotiate with and seem to be a bit more responsive to realtors’ efforts to negotiate a short sale.

 So my suggestion is that if you are considering the purchase of a short sale, please only make an offer on a house that you really like.  It is unfair to the seller to keep the house off the market only to back out two months down the road.  For you see, the foreclosure clock keeps on ticking while the banks are sitting doing nothing or pretending that they are doing something.

 Sometimes the reason a short sale fails is because of the presence of a third party lien.  These seem to shut down all possibility of negotiation.  These liens do not show up in the county court records, but are attached to the house in the property records in the county clerk’s office.  Usually the homeowner is unaware that such a paper exists in their records at the county clerk’s office.  An extra run to the court house to the clerk’s office can help everyone involved.  A seller can get around these liens by consulting a good bankruptcy attorney and getting a stay of bankruptcy prior to the sheriff sale.  

 In short, a short sale is a good opportunity to get a great deal on a house and help a family stay out of foreclosure.  I just beg you to be sure you love the house, because it is devastating for a family facing foreclosure to have a buyer back out.  I barely stop short at saying that a buyer has a moral obligation to buy a house they have contracted for, but I really can get up on my soap box on this one.  

Buyers:  Shop carefully, deal carefully, and know that you want the house.  Then go for it  – and stay with it.  Good luck and happy house hunting.

Sellers:  Find someone who has some knowledge and experience in dealing with foreclosures who can help navigate you through the short sale process.

 I hope this helps.

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This article is reblogged with full permission of the author, Debbie Solano, from a blog post with the same article which appeared on ActiveRain.com four years ago. All of the opinions expressed in this article are those of the author alone.

Short Link: TulsaShortSaleAgents.com/?p=101

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Copyright© 2008-2012 by Debbie Solano — ALL RIGHTS RESERVED — TulsaShortSaleAgents.com — What is a Short Sale?

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