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Avoiding Foreclosure, Possible a Short Sale or Loan Modification

30 Jul 2009 1 Comment

by Sandy & Mike in Money Saving Tips & Finances Tags: default, foreclosure, loan mod, loan modification, mortgage, mortgage default, real estate, realtor, save your home, saving my home, short sale

Okay, here’s our background…Mike & I are Real Estate agents, have been for 10+ years.  We are licensed in NJ & FL.   I (Sandy) did a speech about “Understanding Today’s Mortgage Crisis” at our monthly Toastmasters public speaking meeting.  Being a Realtor both Mike and I have seen it all!   There are crazy things happening in our tough economy today, but fear not,  there are many options available if you are struggling to make your mortgage payments. 

 A loan modification is available to most if behind on payments with a financial hardship, a short sale is when the lender gets less than owed if you want to move, and are having financial hardship and owe more than your home is worth, and the last resort is a foreclosure, on your record usually 7+ years of negative credit as opposed to 2 years with a short sale. 

If you choose just to let things fly to the wind and let your home go into foreclosure, sometimes even after the bank eventually takes back ownership, they can still come after you for damages.  Avoid the foreclosure if you can.

 Most people can do a loan mod or short sale instead.  The cases where their is a  2nd or 3rd position lender may be more difficult to do the short sale, but not impossible.  They are not too thrilled because normally they will get zero proceeds from the sale if your upside down in the home and do not want to help.  In these cases, have the buyer of your home throw them a bone, maybe $5,000 on $50k owed, and maybe they will be happy with something rather than nothing if the home is foreclosed on.  IT’S ALL NEGOTIBLE!  Good luck and submit any questions you may have and we will try to help!  We’ll see you at our website:  http://www.TheRealParents.com