There are many options for Central Florida sellers who are in foreclosure. While some may seem simple and obvious, many others may be unknown to the consumer and their real estate professionals.
It is my goal, through this series, to address the 9 Options for sellers who are facing foreclosure so that the public and real estate agents alike can determine which options may be worth pursuing.
To get caught up, you may want to read the 9 Option Summary here.
Option 1: reinstatement of your loan here, Option 2: Forbearance or Re-Payment Plan here, Option 3: Sell the Property here and Option 4: Rent the Property here.
Options 5, 6 & 7 all involve refinancing or modifying of the borrower's loan, and that post can be read here.
Now that the first 7 options have been reviewed, the 8th Option for sellers facing foreclosure is being reviewed in this article.
Option 8: Deed-in-Lieu of Foreclosure: Sometimes this option is referred to by lenders as a "friendly foreclosure," as the homeowner "gives" the deed back to the bank in hopes that the lender will not have to initiate a lengthy foreclosure process in exchange for that lender releasing the seller from being responsible for any deficiency judgment. Typically, this type of solution works in cases where there is one mortgage only or when the second mortgage holder is willing to negotiate this type of arrangement with the first.
In the event the borrower has equity in the property, a Deed-in-Lieu of Foreclosure is not a recommended option as the owner loses their rights to the property and any equity they may have.
When facing foreclosure it is highly recommended that sellers hire a Real Estate professional who is not only experienced and educated but also has relationships with Real Estate attorneys, as some of the suggested options for sellers are best handled by both the REALTOR and the attorney working together for the seller's best interest.
For a list of recommended Real Estate attorneys in the Central Florida market, please contact me via email at LaShawn@LaShawnNorden.com . I'd be happy to provide you with a list of reputable attorneys who I know personally and who have had success in negotiations with lenders.
LaShawn Norden, PA, REALTOR, Certified Distressed Property Expert, (321) 377-0157, LaShawn@LaShawnNorden.com, www.LaShawnNorden.com
Direct: (321) 377-0157, LaShawn@YourHomeOurPriority.com Certified Distressed Property Expert (CDPE), Accredited Luxury Home Specialist (ALHS) & THREE-YEAR Five Star "Best In Client Satisfaction" Award Winner! Click HERE to visit MY WEBSITE!
Priority One Homes Team @ Keller Williams Heritage, Offices in Lake Mary, Longwood & Downtown Orlando, Florida
SEARCH MLS HERE for CENTRAL FLORIDA Resales, Foreclosures, Short Sales, New Homes, Condos, Townhomes & More.
Should you or someone you know be interested in buying or selling Real Estate in Central Florida, I'd love to earn the business! I am never too busy for referrals!
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LaShawn - Another great post showing what the options are for owners facing foreclosures. I missed a few in this series so I need to go and do some reading!