The process of foreclosure can be a quite ordeal for many home owners. When a home owner fails to pay for a mortgage for some time, a notice of default is normally sent to him or her. The document normally sets a date for which the delinquent balance which may be paid in order to stop any continuous proceedings.
If the home owner fails to pay, the foreclosure process is completed. The lender can seize the property or hold it for some time and finally proceed to sell it. The property can also be sold through a public foreclosure through auction. In both cases, the home owner looses the right to the property.
Foreclosure is a process that normally makes many home owners cower in the present economy and housing market. Even though, a lot of home owners have suffered the fate of losing their homes to foreclosure because of unavoidable financial and economic hardships, there are ways in which home owners can minimize the risk whenever it happens to them and avoid foreclosures. When the impending foreclosure is due to overspending, lack of planning or losing one’s job, there are alternative options which can be tried to avoid foreclosures.
Know Your Options
Any person who is yet to buy a home is in a unique position to set up oneself for a successful home ownership. One major mistake, which many people make is to over spend on their dream home instead of buying within their range. Even if, a person can afford to buy the house immediately, he needs to ask himself if he is able to afford to maintain the home when he loses the job.
Buying a home is all about making good investment and it means keeping the investment even at tough times. A person needs to ensure that he has a manageable mortgage payment or enough money to save, which can help in supporting the payments whenever a person loses his income.
This is a special arrangement with the mortgage company that allows a home owner to sell the business property or house for less than the remaining balance on the loan. When the lender agrees on the short sale, a person can avoid foreclosures. On the other hand, a person must give up his or her property to the new buyer.
The advantage of a short sale to a property owner is that he can clear up his account without the worry of foreclosure appearing on his credit report. Many banks favor short sale because they normally get a guaranteed sum upfront, and they do not have to spend extra money trying to collect on foreclose on the property or bad mortgage.
Home owners who find themselves in such situations can hire a foreclosure attorney who can guide them through the process once they have decided that short sale is best solution for them. An attorney can guide you in avoiding the pitfalls of the short sale process. He can negotiate terms which can waiver the balance of the loan which is not covered with the sale. In most situations, the government normally forgives debt as earned income, so when you have no proper legal counsel, your life can be more devastated by the taxes.
Whenever there is an impending foreclosure, every situation is normally different. Regardless of where a person is on the foreclosure path, nothing can be more beneficial than an open talk with the creditors. In most cases they want to help and can see solutions which borrowers are not aware of or cannot see.
Are you struggling with mortgage payments? Facing Foreclosure? You want to move on and avoid foreclosure? Let us be your help in pursuing short sale option.