With the current economic downturn in our country, the market is flooded with foreclosures and short sales. Most of the house owners do not have any other option and they have to leave their houses. Being one of the experienced Temecula short sale agents, a lot of people ask me for possible alternatives to short sales and foreclosures. Well, to be true if your house is underwater than there are very few possibilities of saving it from a foreclosure. But there are some possibilities that may help a fraction of people if not all of them. I am going to discuss some alternatives for saving your house from a short sale or foreclosure proceeding.
Short Sale Alternative #1
The first option to look out for is to get approved for a government refinance program. Our government is trying hard to help the people in these situations and National Mortgage Settlement is one of the best options for house owners. HARP is another refinance program that allows house owners to get the whole mortgage refinanced. One can get loan from Freddie Mac and Fannie Mae. There are some other refinance options that may allow some percentage of loans to be refinanced.
Short Sale Alternative #2
Note modification is another option that may help the house owner in some cases. While working as short sale agent in Temecula, I have seen people going for note modification under which the house owner asks to modify the terms of the note. Some people have even successfully got their interest lowered without any further modification in the loan.
Short Sale Alternative #3
Being as expert in dealing short sale in Temecula, some people have asked me about owner financing for selling their house. You may think that why someone would overpay for a house that is already underwater? Well, there are a lot of people looking for attractive lease purchase option and lease sale deals. In some cases, transactions are calculated after considering the future value of the house and may even yield better payments. Make sure to get upfront payment to ensure that the tenants will keep on paying the balance.
Short Sale Alternative #4
Loan modification is another possible alternative to avoid short sale and foreclosures. Most of the people hire loan modification companies without knowing that these companies do not perform any task which cannot be handled by an individual. It is best to talk to your bank and find out whether it is possible to get any loan modification.
Short Sale Alternative #5
One last option that I would suggest is to pay the bank to conduct short sale for your house. Most of the lenders would accept to a short sale under which the house owner is ready to part in the overall loss of the bank. It is often called as strategic short sale and some banks may accept a payment up to 10 cents per dollar or even less. Moreover the owner need not be into any type of financial hardships for such short sale.
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