Help Avoid Foreclosure

 

SHORT SALE:  Help Avoid Foreclosure!

A Short Sale is an "arrangement" between the current owner of a home and the bank that lent them the money to buy their home to accept an offer for less than the total amount owed to pay off the home. The "deficiency" is the difference between the amount owed and what the bank collects at the short sale.

Most short sales arise when a seller owes more on their house than they can sell it for. The owner of the home then attempts to make an arrangement with their lender to sell the house for less than is owned. For it to be a Short Sale, someone must be getting "shorted." Either the seller, or the bank.

Despite popular belief, you DO NOT HAVE TO BE BEHIND ON YOUR MORTGAGE TO REQUEST A SHORT SALE. You just have to demonstrate that your house cannot be sold for what you owe.

Contact Keith Cook or Rachael Wilson at 360-647-1313. As Certified Distressed Property Experts they can help you avoid foreclosure, and potentially keep you in your home! Let us help prepare you for your future.

 
 
FORECLOSURE:

"Foreclosure is the procedure by which a party who has loaned money secured by a mortgage or deed of trust on real property forces the sale of the real property to recover the money due, unpaid interest, plus the costs of foreclosure, after the debtor fails to make payment."

"If the delinquency and costs of foreclosure are not paid within this time, then the lender (or the trustee in states using deeds of trust) will set a foreclosrue date for selling the property at public sale."

"There is also judicial foreclsoure which is used in several states with the mortgage system or in deed of trust. This procedure is used when the amount due is greater than the equity value of the real property, and the lender wishes ot get a deficiency judgment for the amount still due after sale." *

Foreclosure not only destroys your credit, you also could lose your security clearance, job and be affected for jobs in the future!

 

Foreclosure Process
  1. Loan Originates

  2. Borrower falls behind in payment

  3. Lender attempts to correct with notices, letters and telephone calls.

  4. Debt gets further in arrears; lender decides to foreclose on the property

  5. Bank's attorney files foreclosure action with the county clerk or recorder's office.

  6. Notice of default lets people know the foreclosure is pending.

Foreclosure Options
  1. Sell the property

  2. Get refinancing. Owner generally needs 30% equity to do this.

  3. Raise own funds

Tips to Prevent Foreclosure
  1. Be proactive. Contact your loan servicer immedietly
  2. Consider refinancing your loan.
  3. Talk to a housing counselor. HUD approves trained counselors to work with not for profit focused on preventing foreclosure.
  4. Get in touch with your local government agencies. *May offer programs for people having trouble making their mortgage payments
  5. Notify your other creditors. *May be able to lower interest rates on your credit cards or consolidate other loans.
  6. Create a budget.
  7. Re-read your mortgage agreement. *Understanding is critical.
  8. Talk to a lawyer if you think you may have been a vicitim of predatory lending.
  9. Beware of anyone who says you don't need a real estate professional or title company when selling your home.
  10. Do not sign over the deed to your property to any organization or person if you are not working directly with your lender to get your debt forgiven.

Short Sale Process

  1. List property for sale
  2. Accept contract to purchase from buyer
  3. Negotiate buyer's offer with lender