What you need to know about Foreclosure.

When there is a shift in the housing market and the economy is in a down turn homeowners sometime get behind on their mortgage payments. This often leaves the homeowner with few options. Usually it’s best to hire a Professional Real Estate Agent that will concentrate on selling your home quickly, negotiate a short sale on your behalf, or get the lender to renegotiate the terms of the loan.

Lot’s of times a homeowner in default will try to sell their home as a For Sale by Owner to “save money on commissions”. As a For Sale by Owner the property is just not going to get the exposure it needs to sell quickly. Having a listing contract with a Professional Real Estate Agent is your best option? Why, you ask? Because when a real estate agent lists your home for sale you tap in to the power of the Multiple Listing Service which puts your home in front of hundreds if not thousands of other agents in the local area.

Also, sometimes having a For Sale by Owner sign in your front yard in a downshifted market will send a signal to predators as “a cry for help”. Some folks will contend that “We Will Buy Your Home” only to illegitimately get you into something you will regret later.  As Real Estate Agents we have the fiduciary responsibility of helping and protecting YOU.

What is a short sale? This is when the lender agrees to accept less than is owed on the property. How long a lender will let a homeowner go with out making any payments, or partial payments varies by lender. The main thing to remember is that the most important goal for you as a homeowner is to get the house sold as quickly as possible. Foreclosure will have an awful effect on your credit. Most of the time, it takes about three years after a foreclosure for you to be able to acquire another home loan.

Sometimes, if a homeowner would prefer to try to keep the home, a lender might consider reworking the loan by forbearance or refinancing. If a rework isn’t possible then you need to go for a short sale. Most of the time a lender will not consider a short sale until there is a legitimate offer for the property. It is very important not to procrastinate in getting the property on the market. Most of the time, by having your real estate agent open the communication lines with the lender, will buy you a few extra months to get the property sold.

This is a lengthy process so you need to act now. Don’t wait until it is too late. You do have options. If you know you’re in trouble contact me now. My team with twenty two plus years of Real Estate knowledge will go to work for you and help you through the short sale process.

Email: david.century21@gmail.com

Phone: 502-296-8935