Lenders do not want your home it does not help them in any way to own your home. When you default on your home and get in trouble first start by talking to the lender. Let them know why you are in trouble and see what they do. Some have not been very receptive and are rather ineffective in there care of their client.
However, lenders do not want to own your home to get it is too costly for them in many ways. If you stay quiet and say nothing and ignore the notices the lender will foreclose and take the home.
There are options the bank may do a loan modification and we just heard of a new federal program where they maybe more willing to do so. Very few homeowners have been able to take advantage of the loan modification banks have been reluctant to do them.
Another option has been to allow the homeowner to sell their home as a short sale. A short sale is where the bank allows the homeowner to sell the home for less than what is owed on the home and allows the sale to go through. This happens everyday and the homeowner does not pay anything to the Realtor for the sale out of pocket. There can be credit reporting issues in doing a short sale because the homeowner did not pay as agreed.
The advantage of the short sale to the bank is they did not have an empty home that could be vandalized. Transfer of ownership happens without them owning the property and they usually have a smaller loss with a short sale than a foreclosure.
If you want more info on a short sale contact us.
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