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Avoid Foreclosure Monroe
The majority of people would like to find ways to keep their homes safe from the foreclosure sale. Additionally, they may not desire to retain ownership of the property. If this fits you, here are some ways to dispose of the property in order to prevent a foreclosure sale. These options will affect your credit rating a lot less than the actual foreclosure.
- Selling the Property – This strategy to avoiding foreclosure involves simply selling the home for a profit. Typically, this is a viable option when you have equity, the property is marketable, and you are in a desirable area. You may work with a real estate agent whom you trust or sell the property yourself.
- Sell the Property via an Assumption – This strategy to avoiding foreclosure involves finding a buyer who will assume your loan, move into your property, and continue making mortgage payments to your lender. FHA and VA loans are assumable. However, you want to make sure your lender will absolve you from any and all responsibility once the buyer has assumed your loan.
- Pre-Foreclosure Sale or Short Selling – This option allows the homeowner to sell the property for less than the loan amount. Be aware of the following: 1) this may trigger a taxable event for the homeowner on the difference between the amount of the sale and the loan, and 2) this is a courtesy of your lender, not a right of the homeowner or an obligation of the lender.
- Deed in Lieu of Foreclosure – This strategy consists of giving the property back, sometimes called deeding the property, to your lender prior to the foreclosure sale. Like a short sale, the lender is not obligated to do this. And, if they do, you should have enough equity to where the sale covers the loan. If not, your lender may not approve or you could trigger another taxable event on the difference.
The key to disposing your property is to act fast. In this case, do not expect to fetch top dollar because the buyer, if they know the reasons for the sale, will want a discount. In many cases, if your objective is to avoid the foreclosure sale, you may have to accept what you are offered. Your most probable buyer will be an investor who has the funds to close and do it quickly. You will release more equity than you would like. However, you will avoid a foreclosure on your record.
In summary, it’s never a good idea to give up your home. In some situations, this is your only option to protect yourself from a foreclosure by unloading the property to an investor; thus, paying the entire mortgage loan off quickly. Unfortunately, if you wait and the lender takes your home, you will get far less for it than you deserve and may still end up owing money to the lender.
Avoid Foreclosure Hell eBook is for immediate download at http://www.HelpStopTheForeclosure.com. It is an excellent resource for solutions to stopping foreclosures.
CP Howard is the co-founder of MaxCap Realty, which is a real estate company assisting buyers and sellers with brokerage, consulting, and investment services. He is a licensed real estate broker, consultant, mentor, and teacher in real estate and finance, as well as an REO Broker in the St. Louis metro area.
Blog site: http://blog.MaxCapLLC.com
Website: http://www.MaxCapLLC.com
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Avoid Foreclosure Monroe
Tips To Avoid Foreclosure
Behind on your mortgage? Frightened of foreclosure? Embarrassed? Well, before you do anything irrevocable like drowning yourself you should consider a “short sale”. There is hope! Keep reading.
The most important first step is to find a realtor/agent that has expertise in short sales. Less than 1% of realtors are trained and experienced in this field of Loss Mitigation. Ask any prospective agent if they are qualified to do short sales and how many short sales they have successfully completed.
Then hire the expert realtor to work with your lender. You pay him nothing. He earns his commission from the lender at closing. (just like a regular home sale closing) He will lead you through an application process to be submitted to the lender to determine if you qualify. And guess what? To qualify you must be behind on your mortgage payment for 2 or more months. And, there are additional qualifications that must be met. The process can take a few months prior to an agreed upon listing price.
Understand that banks do not want or like to do foreclosures. In today’s market most lenders would prefer to do short sales than foreclosures because foreclosure hurt them financially. So, the fundamental motivation for the lender and the homeowner are the same. Minimize losses and avoid foreclosure. And, you can move out without destroying your credit rating once the short sale is closed and make a clean start.
For several different reasons less than 50% of short sales succeed. However, on the ones that do succeed, the lender pays your closing costs and forgives the unpaid mortgage balance.( verses a foreclosure which still holds you responsible for the balance )
PROSPER STATS FOR OCTOBER
Another slow month for home sales ( 22 ). YTD sales are 298 up about 12% over 2007.
Average home prices YTD are up 7.5% at $316,307 vs. $294,104 for 2007. (entirely due to new more expensive homes going on the market.
Days on market (DOM ) for October sales were better at 129 vs. 166 YTD.
There are 233 homes for sale in October vs. 346 last October.
MORTGAGE RATES
Good news!
As of November 11, the rate 30 year fixed with no point origination is 5.875% and 5.625% with a one point origination fee.
A 15 year fixed rate with no point origination is 5.5% and 5.25% with a one point origination fee.
THINKING OF LISTING YOUR HOME FOR SALE?
With all the bad economic news on Wall St. and Main St. coupled with the upcoming holidays, I am telling my clients to wait until January or February to list. Why add to DOM (days on market ) during the next 6 weeks when home buying activity will be slow. Remember, home listings get their surge of lookers soon after the listing. Usually the first or second offer is the best( I have no clue as to why).
Lastly, for homes to sell quickly in these very competitive market conditions, do not make the all too often fatal mistake of starting out with a high listing price and then dropping it later because of no offers. List it at a competitive price or a little below if you are serious about getting it sold. Almost all buyers today are savvy and know they can pretty much get great bargain.
Have a wonderful Thanksgiving!
Bill Remington is a seasoned realtor in the North Dallas suburbs. Presently, President of Prosper Chamber of Commerce. Key markets are Plano,Frisco,McKinney and Prosper. Espert in short sales, REOs and foreclosures. www.billremington.com
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Avoid Foreclosure Monroe
The first thing you’ll want to do to avoid foreclosure is stay current on your mortgage payments. Of course this is obvious, but what may not be so obvious are the options you have for doing this. If you are already behind on your payments, there are some tips for you in in part two as well.
If the problem is truly temporary, and soon you’ll be able to handle your payments again, borrow the money to keep up on your payments. Family may be able to help, but even if you have to pay a few hundred dollars in interest for credit card advances, it may be better than losing your home. Consider what you have to lose in equity, and you may find that it even makes sense to cash in some of your retirement account and pay the penalty. You may also be able to borrow from your 401k.
Don’t start borrowing on credit cards and breaking into retirement funds if the situation isn’t truly temporary, however. You’ll just make matters worse. If the real problem is that the mortgage payment is just more than you can handle, you need to look at long-term solutions.
If you have maintained your credit rating to this point, you might find financing with lower payments. Lower payments can be because of lower interest rate, or a longer amortization period. Don’t be tempted into lowering your payments with an adjustable rate loan that has a low initial interest rate. Unless your income situation changes dramatically, in a year or two you’ll have the same problem all over.
Another option is to sell the home an move into a less expensive home. This works best if you have some equity in your home, to help you with both the down payment on the next one and with the transition costs. If you have no equity, you may have to consider selling your home and renting for a few years.Already Facing Foreclosure?
If you are already late on your mortgage payments, don’t wait for things to happen. Get actively involved in solving the problem right now. You not only face being foreclosed on and losing your home, but if the home is then sold for less than you owe, you might be sued for the difference (depending on the terns of your mortgage loan). Both foreclosures and deficiency judgments can seriously affect your ability to qualify for credit in the future.
Call the lender and explain the situation. Depending on the type of loan, lenders can sometimes arrange a repayment plan (for back payments) that you can afford. They can sometimes arrange a temporary reduction in the payments, or even a temporary suspension of payments. (The latter isn’t likely unless you have been laid-off from work and have a return date.) They can even occasionally modify the mortgage to reduce the payments, by lengthening the term.
FHA and other government-backed loans have other possibilities for avoiding foreclosure. Call and talk to a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 to locate the nearest housing counseling agency. These agencies frequently have information on services and programs offered by Government agencies and lists of private and community organizations that might help you. They may also offer credit counseling, and the services are usually free.
If you definitely can’t handle the payments, consider offering the lender a “Deed-in-lieu of foreclosure,” if they’ll accept it. This is when you voluntarily “give back” your property to the lender. It won’t save your home, but it’s less damaging to your credit rating than a foreclosure. Some lenders will allow this if you have no other viable options and you have tried unsuccessfully to sell the home.
Move fast and do what you can to resolve the situation. But unless you have had an unusually long period of unemployment, or you had large unexpected medical costs, the problem is probably rooted in you poor financial habits. In that case, be sure to learn your lessons, so you can easily avoid foreclosure the next time around.
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Avoid Foreclosure Monroe
If you’re behind on your payments and facing a foreclosure, experts advise “ACT QUICKLY AND DON’T HESITATE ANOTHER MINUTE!” In Mississippi that’s really sound advice because once a lender decides to foreclose on your property it only takes them about 30 days to take your home. By law they can do it in 21 days. That doesn’t leave you much time at all. So in Mississippi you must ACT NOW or your home will be foreclosed on quickly and that foreclosure will negatively affect your credit rating for 10 years! Mortgage and credit experts say that, after bankruptcy, having a foreclosure on your credit report is the worst result and will reduce your credit score by over 250 points. You could also have to wait up to three years to qualify for a mortgage at a reasonable rate.
Life can be really challenging and there are many situations that cause good, hardworking families to go into foreclosure such as health problems, family death, rising mortgage payments, loss of job, divorce, medical bills to name a few. Prior to our current financial and credit crisis, the number one cause of foreclosures was health and medical problems.
Who We Are. MSHomeSolutions is a real estate investment and solutions company that specializes in working with families who are facing foreclosure. We work closely with homeowners like you to understand your situation and determine what options best fit your needs. We have experience and expertise solving difficult problems and we have helped many home owners who were in similar situations. In those cases where a homeowner wants to “SAVE MY HOME” and is financially capable we can work with the lender to negotiate an acceptable plan. In those cases where a homeowner is not financially capable of keeping their home or just wants to sell their home we can buy your home fast either outright or working with the lender to complete a short sale, take over the loan (even if there’s no equity), make up back payments, or come up with some other creative solution, including possibly giving you equity back out of your home. We serve Hattiesburg and the surrounding areas of Forrest and Lamar counties including Petal, Oak Grove, Purvis, Sumrall and many other areas throughout Mississippi.
If you are in a difficult situation now and are falling behind on your mortgage payments, and need help you can complete our Home Questionnaire and we would be happy to let you know what your options are. There’s no obligation or cost.
Whether your house is going to be auctioned off in a few days, or you just received your first notice from your lender, it is important for you to consider all your options and rights. For your help and convenience we have provided a summary of some of your options below.
Reinstatement Plan. A reinstatement of your existing mortgage is to simply pay back the total amount your loan is behind by paying all of your back payments which may include monthly principal and interest, late fees and attorney fees to bring your loan current. By proving to your lender your ability to make up your back payments in one lump sum, your lender will usually reinstate the loan. Some possible sources of reinstatement money are retirement accounts, income tax returns, and close family members. NOTE: In situations where a homeowner comes up with the money to reinstate their loan, but nothing changes in the financial hardship that caused them to get behind in the first place, the homeowner is usually back in foreclosure within 6 months.
Workout Plan. Your lender may consider a workout or repayment plan if you had a short term hardship that led to your financial difficulty. Basically, a workout plan lets you pay back the amount you’re behind, usually over 12-24 months plus your regular monthly payment. The lender will want you to pay some amount of your back payments upfront, usually about 25-50% of your total back payments. NOTE: Consider this option only if you can afford to pay more than your monthly mortgage payment, have upfront money to pay the 25-50% of your back payments now, and your financial hardship is short term. Beware if you are trying to negotiate your own workout plan. Our experience is that lenders are notorious for signing homeowners up to workout plans that put the homeowner into a worse financial situation that before and the homeowner is quickly back into foreclosure and out their upfront money.
Loan Modification. In some cases a lender will allow you to restructure your loan which will stop the foreclosure process. A typical loan modification will add your back payments to the principal of the new loan. Loan modifications usually change your current interest rate and loan term so you can now afford the new monthly mortgage payment based on your new financial situation. NOTE: In most cases, you must qualify for a loan modification just like a new loan. Lenders are currently under pressure to perform more loan modifications to help homeowners avoid foreclosure today, but many lenders are telling homeowners that they don’t do them. It takes good negotiation skills to get a lender to do a loan modification and to negotiate terms that actually help the homeowner out of their financial difficulty.
Refinance. Refinancing is a long term solution to stopping the foreclosure process. You must qualify for the new loan and depending on the financial difficulty that got you into this situation, that may not be possible. And, depending on your local real estate market and when you purchased your home, you may not have enough equity in your home to refinance. Get a recommendation from a friend or relative for a good mortgage broker or loan officer. A good mortgage broker will probably have more loan options. Typical costs for refinancing are 2-4% of the loan amount which pay for appraisal, lender commissions, recording paperwork, credit report, attorney fees, etc. NOTE: Stay away from pre-payment penalties and ARM’s (Adjustable Rate Mortgages), which got a lot of people into this mess to begin with.
Deed-In-Lieu Of Foreclosure. A deed-in-lieu of foreclosure is where a lender agrees to take the property back, not foreclose and release you from the debt. You can only have one mortgage on your property. The property will need to be in good condition and lenders usually require you to have tried to sell your home. NOTE: In general, lenders do not like to take a property back and release you from your debt.
Sell Your Home. If you are not financially able to keep your home and you don’t see any change in your current financial dilemma that would allow you to keep it with one of the above options, then the best option is to sell your house. Ray Martin, the CBS Early Show’s financial guru says “Lose the house, but not your credit.” If you can sell your home fast before your lender takes the property then do it. The impact of a foreclosure is great, especially if your goal is to be able to buy another home. The foreclosure shows up on your credit report as “debt discharged due to foreclosure” and will reduce your credit score by over 250 points and you may have to wait up to 3 years to qualify for a mortgage at a reasonable rate. Your options for selling your home are to list with a Realtor, sell it yourself as a for sale by owner (FSBO), or sell it to a professional real estate investor.
Selling through a Realtor is the traditional way that most people know how to sell their home. The difficulty in selling your home through a Realtor is that you need to sell your home fast and in today’s depressed market houses are sitting on the market month after month after month. You don’t have that much time. And in situations where a ‘Short Sale’ (See Short Sale below) is warranted, usually because of the lack of equity, the skills required to negotiate a successful short sale with a lender are usually opposite those of a Realtor.
Selling your home yourself offers the same set of problems as selling with a Realtor and also includes how you will market your property. A sign in the yard is one thing, but what about the cost of advertising in your local papers. You’ve got the get your home sold fast.
In order to sell your home fast, you should consider getting a free confidential no-obligation offer for your home from your professional real estate investor. Your professional “We Buy Houses” real estate investors are usually part of a local Real Estate Investment Association and have daily experience and expertise in working with homeowners in difficult situations.
Short Sale. A short sale is basically a sale where the lender agrees to take less than or “short” of the amount owed. A short sale is negotiating with your lenders to accept less than what is owed. If there is not enough equity to sell your home, pay off the mortgages and cover the cost of selling, then a short sale is usually a good option to foreclosure. There are other situations where a lender will consider a short sale. A short sale can be VERY time consuming and complicated and requires good negotiating skills and understanding of the lender’s loss mitigation processes. If you have a second loan you usually have a better chance of doing a short sale with the second lien holder because if the first lender forecloses and sells the property at auction, the second lien holder only gets what’s left over from the proceeds of the sale after the first lender is paid off. Usually the second lien holder is wiped out. So you can see their willingness to negotiate.
We would not suggest trying to complete a short sale on your own. There are a multitude of details and paperwork involved in a short sale. Having a professional on your side can make or break the deal. Someone who knows the short sale process and paperwork is a requirement for a successful short sale.
One of the most important factors in starting the short sale process is having an offer. Lenders usually will not even begin processing the short sale package paperwork without a valid purchase and sales agreement. This is the primary reason we strongly suggest contacting your local professional real estate investor. Very few Realtors fully understand the process of a short sale and even fewer are willing to invest the amount of time it takes to complete a successful short sale, not withstanding the required negotiation skills. Listing your property and waiting for an offer takes valuable time needed to complete the short sale process. As the short sale becomes a more and more common vehicle for lenders to dispose of their non-performing assets during this mortgage crisis, more Realtors are listing homes as “short sales” and “negotiating” with the lender for a reduced price before they have an offer in the hopes that this will help them attract buyers. They don’t know where to price the house and typically price the house too high as they “talk” to the lender, asking them what they would take, thinking that this is “negotiating” a short sale for the home owner. It must be noted that this is not a short sale and the majority of these homes end up being foreclosed on for the lack of any buyers or the inability of the Realtor to negotiate a successful short sale for a buyer if they do get one. It’s not that the Realtor doesn’t care about their customer; Realtors and investors both care about their customer.
Because it only takes a lender about 30 days to foreclose on your home in Mississippi, time is of absolute importance. Real estate investors act fast, charge you nothing to buy your home and you don’t have to go through a foreclosure. With a successful short sale, everyone wins. For a free, no-obligation stop foreclosure consultation please vist our website at www.MSHomeSolutions.com and complete our Questionnaire.
Keywords: hattiesburg mississippi, sell my home,sell my house fast, we buy houses, foreclosure, save my home, sell your hattiesburg mississippi home, house,avoid foreclosure, behind on payments, sell your home, sell your house, we buy houses fast, lamar,forrest, real estate, purvis, petal, oak grove, sumrall
MSHomeSolutions buys houses in Hattiesburg, Petal, Oak Grove, Purvis and throughout the Mississippi (MS) Pinebelt in Lamar and Forrest Counties and can often do so in 7 days or less. We can pay all cash, take over your mortgage payments or come up with a custom solution to suit your needs. We are also specialists in working with home owners in foreclosure. We can help you SAVE YOUR HOME from foreclosure or we can buy it even if there’s no equity. For more information on how we can buy your house fast or help you avoid foreclosure, please visit our website at www.MSHomeSolutions.com or call 601-544-9400.
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Avoid Foreclosure Monroe
A Short Sale Can Stop Home Foreclosure & Save Your Credit
Nothing is as detrimental to your credit rating as late mortgage payments and foreclosures. If you have fallen behind on your mortgage payments and are facing home foreclosure, you should consider using a short sale to sell your home now and avoid foreclosure.
One of the most common questions that homeowners ask is, “can I still sell my home if I am in foreclosure?” A Short Sale is simply selling your property for less than what is owed with the permission of your mortgage lender. It is not as complicated as many foreclosure advice experts make it sound, and is one of the best forms of foreclosure help available. There are three steps to closing a short sale: short sale pre-qualification, marketing the property, and closing the short sale.
The first step, short sale pre-qualification, is when you contact your lender and explain that your financial situation has changed and you wish to avoid foreclosure by selling your home. Most lenders have a short sale application that can be faxed or emailed. The application will tell you what documents you will need to gather and submit to your lender in order for them to determine if a short sale is an option. Common documents include paycheck stubs, tax returns, hardship letter, and bank statements. These items show your lender that you are not in a position to repay the loan.
Once your file has been pre-qualified for a short sale, you will market the property to find a qualified buyer. This means hiring a realtor and, if you can afford it, advertising your property in your local newspaper or other real estate publications. Remember, you are not trying to profit from the sale or cover what is owed to your lender. You are simply trying to stop home foreclosure and avoid have a foreclosure on your credit history by helping your lender recover as much of the money they loaned you as possible. It is also important to remember that the foreclosure process can be quite lengthy in some states, so don’t give up using a short sale to avoid foreclosure just because you do not find a buyer immediately.
Lastly, once you have found a qualified buyer, you will submit your purchase contract and the buyer’s credentials (pre-approval letter or proof of funds to close) to your lender. If your lender accepts the offer, then the deal is sent to a title company who will facilitate the closing of escrow. It is also important to order any city of point of sale inspections or other inspections as to avoid delaying your buyer from closing on time.
Once you have completed these steps, you will have stopped home foreclosure and your credit rating will be much better, in most cases, than if you had simply done nothing and lost your home through the foreclosure process. A short sale is a great option to anyone trying to avoid foreclosure.
