Facing foreclosure can be a very stressful process. The problem is, is that you have so many so called foreclosure experts who have recently crawled out of the wood work ofering to help you solve your foreclosure dilema. Their interests can be to either buy your home from underneath you and either resell it or lease it back to you. In either case you must be careful and watch for the common traps. Often times, people do mean well by trying to purchase your home at a discount to what you owe on your balance.. This process is called a short sale.
Short sales can be a great way to get rid of the property and save your credit before it gets too late. If you can avoid foreclosure, by all means do it. Having a foreclosure appear on your credit can be the worst thing to happen to your credit and can make it almost impossible to get a new mortgage for atleast three years. The common pitfalls of foreclosure can be the buyer never buys your home (due to a number of reasons) the lender does not allow you to get any cash back from the transaction regardless of how much equity you have in the property, or the lender comes back to you for any loses they incur (known as a judgement of defieciency).
A judgement of diefiency can create a taxable event to you. Often times, you think you are walking away from your problems only to be given a 1099 by your lender for the amount of money they lost. This can be a devastating setback because this is money you owe to the IRS and is almost impossible to get out of this debt. Those facing foreclosure should consider all options and be sure to consult with an expirienced attorney. Another good source to turn to help is http://www.illinoisforeclosurehelp.org they offer a home study course to help you negotiate your way out of foreclosure and also offer a consultation to help negotiate with your lender to help protect you from all the unexpected kicks in the stomache that can occur during and after the foreclosure process.
If you are in foreclosure, it is essential that you gain control as soon as possible so you do not ruin your credit. Having a good credit rating is a must in this economy and can cost you a better paying job as well as substantially higher interest rates over the life of your loan. http://www.boostmycreditscorefast.com offers a home study course to help you improve your credit, rebuild after foreclosure and or bankruptcy, and will show you how to get credit cards, mortgages and even a new car even if you have experienced a credit setback.
Those who have fallen into foreclosure because they have been a victim of the bad economy, lost a job, or had a medical set back and have over come their set back may be able to qualify for a special pay rate reduction to help keep their homes and save their credit. Visit http://www.illinoisforeclosurehelp.org for more information. Those whose financial situations have deteriorated, may wish to just get out of the home they can't afford and start all over with either a short sale or a deed in lieu of foreclosure-where you voluntarily give your home back to the bank.
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