Possible Options for Owners in Foreclosure

By
Real Estate Agent with "Lisa The Broker" California 01424711

The amount of home in foreclosure in the United States is increasing at an alarming rate.  Families are being displaced as it is a life changing event.  There are options available to store foreclosure and the majority of owners in foreclose are not aware of what is available to them.  Please find below a few options that may be worth looking into.

Should there be enough equity in the property, the owner may:

  • Be able to secure a secondary loan to cover the delinquent loan amount and provide some extra money to cover the monthly payment until the harship is resolved.

If the owner does not want to sell andf beleives their financial situation will change i nthe near future they may negotiate with the lender to:

  • Reduced Interest Rate - The owner can attempt to get the lender to reduce the interest rate (Lowering the payment)
  • Restructure the Monthly Payments  - The owner may be able to negotiate the lender to restructure the exsisting loan to make it more affortable.

Should the owner be financially unable to keep their property, the owner may:

  • File Bankruptcy - Filing for bankruptcy may only prolong the situation and may not be a solution.
  • Walk-Away - The owner may just want to walk away and allow the property to go into foreclosure.
  • Deed in Lieu - Should there be enough equity, the owner can offer the lender a deed in lieu of foreclosure.  (This will deed the property over to the lender without the foreclosure.)
  • The owner can list the property for sale with a Real Estate Professional.

 

There may be possible tax and or credit consequences associated with some of these options and the owner should seek the advise of an attorney and/or certified public accountant.  This information is provided as advise, but as an attempt to educate property owners of possible options to avoid foreclosure.

Posted by

Lisa Marie Flenoury, Broker

CENTURY 21 UNION REALTY

(310) 766-0964

Lisa@LisaFlenoury.com

Comments (3)

Stefan Geyer
SOA Realty - Aurora, CO

I heard yesterday that 8 out of 10 foreclosures in the country are located in California.  Is this accurate?  Your information is very timely, did you post it on Localism?  The general public would likely benefit from your information.

Jun 21, 2008 01:11 AM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Hi, welcome to Active Rain! I hope to see more of your blogs in the future. Learn from others, share your knowledge and experiences and enjoy yourself! Take care! ---Kirk.

Jun 21, 2008 03:46 AM
Charlene Hammontree
616 Realty LLC - Rockford, MI
Meeting the needs of Buyers and Sellers in MICH

Hi, Welcome to AR and great first post! We here in Michigan have a forclosure issue! It is going to take a lot to educatate our clients on this process as we continue to learn the changing market too!

Jun 21, 2008 05:15 AM

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