Thursday, April 21, 2011

Best Avoid Foreclosure Option at Orange County Real Estate

Avoid foreclosure 

If you're facing foreclosure, you're probably upset and don't know what to expect.  You have questions about foreclosure and how long will it take before the lender finishes that process and kicks us out of the place.  You wonder whether you will still owe money to the lender/lienholder at the end. Take action now

You should try and avoid foreclosure, and a SHORT SALE of your property can be YOUR BEST OPTION. 

short sale signYou need to get organized and hire a Realtor to list your property on a SHORT SALE before it's too late ... especially if the value of the home is less than what is owed to lender/lienholders.

Other possible foreclosure options:  

Deed-In-Lieu of Foreclosure - where you surrender your home to the lender, which helps the lender sell your home faster and protect its investment (not recommended option). 

Loan Modification - OK to try if you want to stay and keep your home.  Some lenders will reduce your interest rate, payment, or possibly extend the term of the loan only.  But they won't reduce amount of principal owed, and you must qualify for the new loan. 

Reinstatement - where you pay the lender for all back payments, late fees, and other related costs.  You then start making normal monthly payments, which would restore your account to "current" status. 

Get a new loan and pay off the old one - OK you have equity in your home.  However, if you owe lienholders more than the property is worth, this usually won't work.

List and sell the property sell your home- This is an excellent idea if you want out of the house.  However, if you owe more on to lienholders than the house is worth, then you will need to do a SHORT SALE.

Bankruptcy - This option would be your last gasp effort to avoid foreclosure, unload the debt and vacate the property.  We don't recommend this.  You should consult with an experienced lawyer in your area prior to filing a bankruptcy petition.

Short sale successAdvantages of a SHORT SALE Alternative to Foreclosure

The lender/lienholder will like your short sale better than taking the property by foreclosure, because it will save money, avoid financial loss and government requirement that it allocate reserves for the liability of REO owned property.  This lender preference might help you get the SHORT SALE approved.  You can negotiate with the lender/lienholder and ask it to agree for sale at price less than what is owed.  You can ask for debt forgiveness and that the lender would not submit a 1099 miscellaneous income statement to the IRS.  You might be able to reduce the damage on your credit history if the lender declines to report the deficiency balance as foreclosure or written off to credit agencies.  And you can start the road to credit recovery sooner and possibly qualify for a loan to buy another home.  


If you have questions or want help to avoid foreclosure with Orange County properties, contact us at 949-854-7747.  We are here to help you.

This is for information only about homes and properties and foreclosure alternative in Orange County and California.  Foreclosure procedures are different in other states.  If you are in Orange County, California, contact us with your questions.  Otherwise, you should hire an experienced Realtor in your state and local area.  We recommend that you also consult with a lawyer prior to finishing the short sale process. 

Harrison K. Long - solutions for real estate and business - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - (email) - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs® - also now serving as director at California Association of REALTORs®.

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Helping people with their best decisions about real estate, listing and selling of homes and properties at Orange County, California. 

Posted via email from Explore OC Homes


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