Avoid Foreclosure? What is right for you? (951) 901-8153.
• Loan balance is greater than today’s market value?
• Can’t meet monthly mortgage payment?
• Facing the possibility of foreclosure?
• Short sale – is it the right thing to do?
• Want to move but market value has dropped leaving diminished equity?
• Loan modification?
There is no way for a property owner to know everything that is available to avoid foreclosure. Banks are being encouraged to be more receptive to negotiating a short sale instead of foreclosing on a property.
What is foreclosure?
Most people purchase real estate by borrowing part of the purchase price from a bank, mortgage company or owner carry back. Sometimes a homeowner needs to borrow money against the equity, known as an “equity loan.” Others may refinance the mortgage loan to combine it with a home equity loan. When a lender is involved, the lender has a lien against the real estate to secure repayment of the loan. Failure to make the payments due on the loan (defaults) the lender can initiate foreclosure . . . the lender can force a sale of the home to pay for the outstanding loan. Call (951) 901-8153.
What is a short sale?
When the mortgage is more than the current market value, the lender evaluates the owner’s ability to meet the monthly mortgage obligation. If it is apparent that the property owner cannot meet their obligation, the lender may negotiate with a prospective buyer to accept a purchase price lower than the current mortgage balance.
Yes, the rules have changed on this, as the property owner no longer needs to be in arrears on the mortgage. If you have been forced into lower earnings because of the economy – whether it is a cut in pay or taking a new job at lower wages – you may qualify for a short sale. Banks have been authorized to help with relocation expenses by offering “Cash for Keys” exchanges. Cash offerings can be any amount from a couple of hundred dollars to upwards of thousands of dollars. This offering is determined by the bank, taking into consideration the mortgage balance, current market value, condition, etc. There is another way. (951) 901-8153.