Powerful information that I give my clients:
If you are a homeowner who has been ignoring the warning letters and telephone calls from your bank you may find yourself in the middle of a foreclosure crisis. At this point in time, fear may automatically set in. What will you do? Where you will live? Can you afford to move? Before you let fear take over, it is important to know that foreclosures can be stopped. Although this process is not easy, it can be done with the right guidance.
First, I encourage you to speak with your lender as soon as you find yourself experiencing financial difficulties. For example, when you get laid off or fired from your job, are going through divorce, or have a medical hardship, you should get on the phone and contact your lender to let them know that you are experiencing a hardship. At the very least, communication should be made if you've already stopped making payments and you receive an intent to foreclose notice. Even if you have a sign on your home stating that the foreclosure process has officially begun, you can still talk to your lender and also an attorney about how to avoid foreclosure. In this instance, the sooner you do so the better as the person on the other end will be required to note it in their files and often times your telephone communication is recorded "for quality purposes". Get their name, the date you made the call, and the phone number that finally brought you to the correct person to make this notation.
As for why you should talk to your lender, even at the last minute, they want to avoid foreclosure as much as you do. Often times, lenders lose a considerable amount of money on the sale of foreclosure homes and if you do not qualify for a loan modification, you might qualify for a short sale. If you can prove that your financial troubles are only temporary, your lender may give you a reprieve and they may stop the foreclosure proceedings for you. If your hardship has been long term and you see no solution, it's time to get ready for your recovery. You can do this by taking several pro-active steps like talking to a Realtor and maybe even an attorney. The Realtor short sale specialist will be able to give you free consultation before you make any decisions.
If you have received a Notice of Default or Intent to Foreclose, it's not necessarily too late. You can still prevent foreclosure, but I highly recommend you seek counsel from an attorney AFTER we speak. Another way that foreclosures can be stopped, in most states, is with a declaration of bankruptcy. However, this step is one that should not be made on a whim. It is important to meet with a recommended attorney specializing in bankruptcy. If you file for bankruptcy will the foreclosure proceedings stop? Can you make it so that your home is not considered an asset in bankruptcy proceedings? If so, this is the avenue that you may want to take. However, since bankruptcy can negatively influence your credit, it should only be used as a last resort. Seeking legal counsel is the only way to know what to do in your current situation as each case is different.
Even if you've had to declare bankruptcy, it is still time to move forward and not be caught up by fear. Realize that recovery takes time, but can be a positive event. I've helped several clients actually move faster in their recovery by taking the first baby steps. After contacting the bank and letting them know your circumstances, it's time to list your property for sale even if you are holding out for the hope of a loan modification. By doing this, you are taking control and are more in the driver's seat of where and when you move. When you fill out a short sale package with a local and qualified Realtor, you are in essence turning the problem over to a professional who will be able to speak on your behalf, become your advocate, and ease the burden you've been carrying.
99% of my clients did not realize that should they need to sell their home in a short sale that not only is my fee covered by the bank, but as long as the loan is purchase money or a second lien is used to improve the property, they are covered by the Mortgage Debt Relief Act vs. foreclosure which comes with a price of a taxable event.
For more information on how to effectively avoid foreclosure, contact me today at:
www.CaliforniaCoastPropertyGroup.com or write me at: SheilaRasak@gmail.com
Learn the key to foreclosure prevention today! Call (805) 628-2898 for more information.
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