January 21, 2018

Foreclosure is not an option, help is available!

More and more homeowners are heading towards foreclosure. A new article published on Housingwire.com has the title Subprime Mortgage Delinquencies Building, Again” . The article points to another wave of upcoming foreclosures. Help may be coming is some form, an article published yesterday on Inman.com says nearly $4 billion in federal grants will be spent to help state and local governments buy foreclosed and abandoned homes The big problem is that for thousands of area homeowners in financial trouble, foreclosure may seem like a viable option. STOP! Before you make that decision you need to know the consequences of a foreclosure on your personal life (yes I said life) and the alternatives.

Did you know that 7 out of 10 homeowners facing foreclosure never seek help from their lending institution to work out a payment plan, or a realtor who can help sell their home in a Short Sale.

What you probably don’t know about a foreclosure will affect you for years to come. For example did you know that some employers now run credit checks on their employees and a foreclosure can put your current position in jeopardy! Additionally a foreclosure is one of the top items that will put a potential new hire in jeopardy if the perspective employer runs a credit check.

The same holds true if you have a security clearance or government position or you’re in military or law enforcement. Check to see if a foreclosure could affect your status, you may be shocked to find out your job or clearance could be in jeopardy.

Your life can be affected in other ways because you’ll have to disclose the foreclosure on any mortgage and many job applications. A foreclosure can haunt you for years, starting with your credit scores being lowered by 300+ points, it’s the most devastating credit issue for future credit availability. You’ll be ineligible for a government insured loan for 5 to 7 years (only 2 years in a short sale). You may end up with a Deficiency Judgment (the mortgage company can still attempt to collect the money they lost from you).

Help is available in multiple forms. If there is equity sell the property, rent it, refinance in what’s called a mortgage modification. You can attempt a short refi which involves the refinance of your home with a reduction in the principal balance and the interest rate as well. You can try a deed in lieu of foreclosure where the mortgage company agrees to take the deed back in exchange for the property. You can file bankruptcy but most of the time a bankruptcy only stalls the foreclosure. Finally there’s the short sale where a homeowner owes an amount on his property that when combined with closing cost and realtor commission is higher than current market value.

Some realtors have been certified to handle short sales. We find the buyer and negotiate with a homeowner’s mortgage company or companies to accept less than the full balance of the loan at closing.

Need help? I’m a realtor at RE/MAX Property East and a C.D.P.E. Certified Distressed Property Expert. Visit http://www.LouisvilleShortSaleHelp.com or Contact Bob at http://www.weselllouisville.com/ or bob@bobsokoler.com .

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