Short Sale / Foreclosure Information

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Real Estate Agent with Real Estate One 342810

Its really frustrating to know that there are so many people out there that do not know they have many options to avoid a foreclosure.

A Deed in lieu of foreclosure: is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.

Short Sale: A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage.   Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes.

What is Forbearance? Forbearance is one option a homeowner has in order to avoid a home from going through foreclosure. Forbearance is the process whereby the mortgage company defers the principal mortgage payment, requiring only the escrow payment be made for the next one to six months. Homeowners sign a forbearance agreement to signify that the lender required them to pay the owed amount at a later time, saving them from foreclosure.

Cash for keys: The damage at vacant homes can be significant, though it is not always clear who the culprit is. It could be an angry homeowner upset about losing a home, but it also could be vandals and thieves scouring homes for copper plumbing, which they can sell. To limit losses, a few mortgage companies are making offers called "cash for keys" to delinquent borrowers if they leave their homes quickly and in good shape.

Bankruptcy: A bankruptcy Should be the last alternative or option, and should not be used to stop foreclosure unless you have no other option or unless you need the protection of a bankruptcy due to other circumstances or situations you are currently up against. If you feel this may be your best option, PLEASE SEEK LEGAL ADVICE from a competent professional attorney in this field.

Foreclosure is a legal process by which a bank, mortgage company or other creditor takes a home owner's property in order to satisfy a debt. The foreclosure is the result of non-payment of the mortgage (including second mortgages and home equity loans); however, people also lose their homes due to unpaid property taxes. As a result of the foreclosure (at the end of the redemption period.), the homeowner loses the rights he or she had to the property.

Alex Meyers Real Estate One - Clarkston MI 48346 248-431-7620 Short Sale/Foreclosure Specialist www.AlexMeyers.com                   

 

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