Riverdale - Every day, more people slip into the foreclosure whirlpool and spiral downward toward the day they may have to leave their home. What should you do if you are on the verge of getting a foreclosure notice?
First and foremost, according to Charles Blumenkehl, president of Blue Realty GMAC, exclusive Real Estate Foreclosure Broker for the NJ Housing and Mortgage Finance Agency, you should resist the natural human tendency to freeze up. Face the issue head on and prepare for days and weeks of making phone calls and corresponding with people who may be able to help.
"Don't assume it's too late to act," said Blumenkehl, "As long as you are residing in the home, you probably have some opportunity to keep your home."
Blumenkehl, a Realtor since 1977 whose company has sold thousands of foreclosed homes on behalf of lenders since 1989, said people facing foreclosure have more avenues to pursue than they might realize - certainly more than the typical "pay up or move out" that many people think is their only choice. According to Blumenkehl, potential solutions include negotiating a modification of the loan, refinancing the loan, listing the home through an agent for a possible "short sale", selling the home to an investor on your own and declaring bankruptcy.
Short sales - in which the lender agrees to take less than is owed on the home, writing off some or all of the loss to avoid the expense of a foreclosure - typically are handled by real estate agents, which at least takes some of the pressure off of a harried homeowner. Many professional real estate agents are working more short sales these days and have buyers lined up looking for bargains, though the process can be slow and frustrating.
"The banks are just not moving quickly. They are sitting on these non performing loans, and it's ridiculous. Hopefully, something will be done to expedite the process, but in the meantime a knowledgeable agent will do their best to streamline the process and get the deal done" said William Lawrence, General Sales Manager with Blue Realty GMAC. Lenders may also reject short-sale offers, sometimes leaving the seller with little or no time to prevent the foreclosure.
Blumenkehl invites anyone seeking additional information to log onto the company's foreclosure assistance site at njforeclosureassistance.com. The site will provide insights as to the process, options and terminologies. For personal assistance in foreclosure work-outs, contact your Blue Realty GMAC Realtor directly at (973) 835-1400 or log onto the company site at www.bluerealty.com. Blue Realty GMAC is the largest independently owned GMAC Real Estate brokerage in New Jersey with 9 offices servicing northern, western and central New Jersey. Blue Realty GMAC also runs its own Mortgage, Title and Insurance agency.