The word foreclosure sends chills up almost any homeowners back, but it has become a common nightmare for millions of real estate owners around the country. if you are one of the unlucky people who is struggling to make ends meet, or just feeling helpless as your home value has dropped, then you may be looking for a quick way out.
Unfortunately, most people bury their heads in the sand. That’s probably the WORST thing you can do, as there are many options for helping yourself out of the situatiion. Ignoring the phone calls and letters will not solve the problem, and it will only get worse as time goes by. By doing nothing, you are risking worse consequences than just your damaged credit and loss of the home. You are also setting yourself up for possible default judgements with deficiency damages, insurance losses, and extended housing problens for years to come. It may even affect your employment!
Should you or someone you know be facing foreclosure, here are a couple solutions to consider to save a few sleepless nights:
Lease out your home. Find a tenant and lease out the home to cover the monthly mortgage payment. Find yourself a cheaper home or apartment until things turn around and you can either move back in, or sell when the real estate market comes back.
Negotiate a short pay or short sale. Contact the lender and ask for a short sale package. Talk to someone in the loss mitigation department, not customer service! Deals are being negotiated right now for 50-75% of the amount owed.
List it at a bargain. Get an appraisal done right away, and interview five real estate agents. have them prepare a comprehensive Market Analysis indicating what your competition is out there, then prive your home 10-15% below market value. You need to move it now – not test the waters!
Sell on a lease option. Advertise a “no money down” sale, with a lease option. This does NOT violate your mortgage agreement, and buys you time while the real estate market is down. Make sure that the option amount is non-refundable, and that it is at least a three year lease.
Conduct an auction. Don’t wait for the bank to do it for you! Hire an auction company, or do it yourself and have a sealed bid auction to the highest bidder. Set a reserve (minimum amount) to make sure that you are going to cover yourself, but a bidding war could be just the thing you need to get out from under the property!
While each of these options requires a little leg work, it couple save you thousands of dollars and years of credit restoration work. make sure whatever you decide to do, you communicate with the lender. They don’t want a foreclosure as much as you don’t, and talking early on will save you time, frustration, your mortgage and credit, and possibly avert an ugly foreclosure. Best wishes!
Foreclosure Solutions For Desperate Homeowners
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