Fewer homeowners are in danger of losing their homes When the housing crisis hit, the result was that millions of people found themselves in danger of losing their home to foreclosure. The struggling economy created financial hardships for homeowners and many needed to sell their home as a result. However, because home values dropped so precipitously, they owed more on their mortgages than the homes were worth. These homeowners are called “distressed” homeowners,and in recent years they’ve numbered in

the millions. Today, however, these distressed homeowners may find themselves in a much better
position. According to the National Association of REALTORS, distressed home sales are at their lowest point since 2008, when the foreclosure crisis started. Since most of the distressed properties have been sold off, they are no longer having such an intense effect on prices. This means that non-distressed sellers today find themselves in a much better position than at any point since the housing crisis began.

 

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Alternatives to
FORECLOSURE
What are your options when facing foreclosure? Try to look at the situation more from a financial standpoint rather than an emotional standpoint. Try to analyze which option might best suit your needs and desires to move you towards resolving your financial difficulty. Though time is of the essence, you should carefully evaluate all your options before making a decision. Once you decide, you must act quickly to make sure you have enough time to complete the solution you choose. Many lenders require you to decide 21 days before your foreclosure date.

Nine Options When Facing Foreclosure

• DO NOTHING
  If you do nothing, you will most likely lose your home at a foreclosure auction.Loan applications generally ask if you have ever been foreclosed upon. Credit reports also disclose this damaging information. Usually not the best option.
• PAYOFF/REFINANCE
  Completely paying off your loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home.
• REINSTATEMENT
  Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
• LOAN MODIFICATION
  Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow you to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.
• FORBEARANCE
  Lender may be able to arrange a repayment plan based on your financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.
• PARTIAL CLAIM
  A loan from the lender for a 2nd loan to include back payments, costs, and fees.
• DEED-IN-LIEU OF FORECLOSURE
  Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained. Most loan applications will ask if you have ever had a Deed-in-Lieu of Foreclosure.
• BANKRUPTCY  – This option can liquidate debt and/or allow more time. We will refer you to a qualified bankruptcy attorney upon request. ● Chapter 7 (Liquidation) To completely settle personal debt Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in
  3-5 years ● Chapter 11 (Business Reorganization) A business debt solution
• SALE  – If the property has equity (money left over after all loans and monetary encumbrances are paid). You may sell the home without lender approval through a conventional home sale. In this case, you will receive cash from the sale. On the other hand, a Short Sale may be negotiated with your lender if you owe more than the property is worth.

Shelda Hodges, PA&#13
Certified Distress Property Expert
Sandals Realty Group,
500 S. Australian Ave. 6Th Floor. West Palm Beach, Fl 33401
Mobile: 561-308-4663 | Office: 561-651-4159 | Fax: 561-422-4829
Shelda@Sheldahodges.com | www.Sheldahodges.com | www.Sandalsrealtygroup.com
FL SL 3023495