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Try these instead of Foreclosure

By
Real Estate Agent with Call Realty, Inc.

Try these instead of Foreclosure
by Kaushik Sirkar, Chandler REALTOR®
Chandler AZ Real Estate

Foreclosure.  What an ugly word.  Various thoughts come to mind when thinking of foreclosure.  Losing your home and ruining your credit are two of them.  Well, just because you lose your job or have a short term crisis does not mean you have to go into foreclosure!  Guess what.  Banks don't necessarily WANT your house.  They may lose money on it.  They'd just as soon you keep making your payments.

Check out this article I just ran across.  Very interesting.  One bank suggests that it COSTS THEM $40,000 every time they foreclose on a home.  They certainly don't want to keep doing that.  The article goes on to suggest various strategies via which a person may retain their home or if they can't, then at least come out financially ahead of where they would be via foreclosure.

Keep the house

  • Loan Modification
  • Repayment Plan
  • A Forbearance Agreement

Better than nothing

  • Preforclosure sales
  • Deed-in-lieu-of-foreclosure

Hey, I'm not going to steal all of money.cnn.com's thunder.  For more details on these strategies if you are in a bad way with your home, go to the link above.  Very sound advice!

Thanks for Reading :)

Kaushik Sirkar, Chandler Realtor®
http://www.homesphx.com

Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
This is great information to share with someone facing hard times.  I think we will be seeing more consumers facing these decisions.
Mar 28, 2007 07:03 PM
Melissa Schnieders
Melissa Schnieders Photography - Wichita, KS
Many people who are facing foreclosure emotionally shut down. They need the guidance of an experienced person to make the correct decision for their situation.  Not everybody can avoid foreclosure and not everyone should. 
Mar 28, 2007 07:10 PM
Luke Constantino
Brooklyn/Manhattan Real Estate - Brooklyn, NY
Residential/Commercial Real Estate Brooklyn NY

This is very good information...

Thank you for sharing.

Mar 28, 2007 07:22 PM
David Petrovich
S.P.O.C.H. a 501c3 Charitable NP - Oakhurst, NJ

How a family copes with the threat of foreclosure is often influenced by the foreclosure timeclock which may be different in different states.  In Arizona, for example, there are two types of foreclosure processes... a judicial process when the security instrument is a mortgage, and a non judicial process when a deed of trust is used. Typically the judicial process can take a year or more while a non judicial foreclosure requires three or four months. 

non profit preforeclosure counseling org

 

 

 

Mar 29, 2007 12:21 AM
Steve Dalton
219-465-8352 - Valparaiso, IN
Northwest Indiana Home Builder
You are right on the money here.  I have purchased before from banks, helping them stave off these tremendous costs to foreclose. 
Mar 29, 2007 05:11 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert
Kaushik, banks don't want to foreclose any more than people want to be foreclosed on.  It is usually very costly for a bank to foreclose on a borrower and go through the foreclosure process.  People get very angry with you when you go to foreclose on them and they do bad things to the house before they move out, that is one of the reasons why it costs so much to get the house ready for sale again, or you have to reduce the price to make up for that.  Foreclosure are not good for everyone involved in the process.
Mar 30, 2007 01:09 AM
Kaushik Sirkar
Call Realty, Inc. - Chandler, AZ

Jennifer - Unfortunately I think you are right.

Melissa - Getting the right advice/representation is of utmost importance

Luke - No problem!

David - Thanks for pointing out the different cases per security instrument.

Steve - Yup, the banks usually aren't going to win with a foreclosure!

George - Couldn't have said it better myself!

Ben - Loan shark??? Lol

Apr 01, 2007 11:48 AM