Avoid Foreclosure Rochester.com

Options When in Foreclosure

 

Short Sale

Definition: A homeowner is “short” when he/she owes an amount on his her property that, when combined with closing costs and commissions, is higher than the current market value. A negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance owed at the close of escrow. A buyer closes on the property and the property is “sold short”. The resulting short sale is not reported on your credit report.

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Options to avoid foreclosure:

1. List your home with a real estate agent
2. File Bankruptcy
3. Deed-In-Lieu Of Foreclosure
4. Loan Modification or Refinance
5. Foreclosure Short Sale

List your home with a real estate agent

If you have equity, you can sell and cure the foreclosure.

If you owe close to or more than what the house is worth with the penalties you need to ensure you have the funds to cover the difference in the sale price minus commissions vs. what is owed.

File Bankruptcy to Avoid Foreclosure

This will stall the foreclosure process but once you exit Bankruptcy protection you will still be in foreclosure and can lose your house adding a second damaging event to your credit.

Contact your lawyer to determine if this might be an option for you.

Deed-In-Lieu Of Foreclosure

Homeowner signs the deed over to the bank rather than go through the foreclosure process.

This process will most likely still be reported as a foreclosure on your credit report.

This scenario typically only works with one mortgage (2nd mortgages will not participate).

Contact your lender and see if this is an option they accept.

Loan Modification or Refinance

Best option if you have income to resume payment on mortgage and amount of principal balance and fees and fines are less than the value of the house. If you owe more than the house is worth a loan modification may put you upside down for years on your mortgage but it allows you to stay in your house.

Foreclosure Short Sale

If you have exhausted the options above call us today at 585-708-7080 to discuss how a short sale may be your best option.