Over the years, people have sought to understand the reason the larger number of people facing foreclosure won’t just give up their houses and put them up for sale. Most of the time, you get to see homeowners in default watch the banks as they lay hold of their homes without lifting a finger.
It cost a lot of people sleepless nights especially young couples when they get notified by the lenders that their mortgage is in default and that their homes would be foreclosed on in a given time.
Based on comprehensive research which was conducted by expert real estate attorneys and investors, we gathered that there are just 3 major reasons why homeowners allow the banks claim their houses with them doing little or nothing about it. These include:
* When defaulted homeowners wait way too long to seek assistance, thereby allowing the lender/ bank make foreclosure move on their properties.
* Homeowners realizing that their home’s current market value is far less than what they owe.
* The wish to relocate to a new house.
Whatever the case may be, when you get notifications that your mortgage is in default, with the exception that you intend to relocate to a new house, you can always negotiate your house back. Should you be in a foreclosure dilemma, there are three choices you might want to make. The first is to declare bankruptcy, second, allow the lender to proceed with the foreclosure or lastly opt for a short sale of the estate.
Alexander Romanov who is an expert real estate investor and co-founder of iwillbuyhouse in Seattle stated that the best of these three options is to opt for a short sale.
“Deciding to sell off the property will not hurt your credit score as foreclosure or bankruptcy will. The only issue is that the money you get from the house sale must be enough to settle what you owe, else the bank/lender will come for you” He added.
The option to sell off the house will require the experience of a qualified attorney and a real estate investor like Alexander who helps people facing foreclosure sell their houses. You would want to get your lender informed that you wish to offer the house for a short sale. After they grant you permission to proceed, get a serious-minded buyer who will definitely offer cash for the property. Just like Alexander pointed out, your lender might take legal action against you if you were not able to cover your debt after the short sale. In a situation like this, it is advised that you both come to a mutual understanding in order to avoid deficiency judgment after the short sale.
In conclusion, there are government aids which enable homeowners in default to suitably modify their mortgage to ease payment and this implies that a short sale is only a choice you opt for after you might look into other alternatives. Do get in touch should you be in be in need of help on foreclosure matter
