As foreclosures hit record levels, more sellers are turning to SHORT SALES as a way to avoid foreclosure. So, how does it work? In a short sale, the property should be for sale at a price that's less than the amount they owe on the property. Foreclosure Solutions will negotiate on your behalf with your lender to accept a price that's less than the amount you owe on the property. As part of this arrangement, the lender typically agrees to forgive the rest of the loan. As a result, the seller doesn't have to go though a foreclosure, and the lender avoids taking on the burden of foreclosing and then selling the property.
Sounds good right? Well, sellers need to know that a SHORT SALE may damage their credit, but probably not as much as a foreclosure. Also, lenders generally will only agree to a short sale if the seller is behind in payments. But they also will need to go through some extra paperwork.
THERE ARE OTHER ALTERNATIVES! Lenders do not want your home or the hassles and costs associated with Foreclosure.
1. A lender may be open to modifying a loan because the cost of doing so is less than the cost of foreclosure.
2. A LOAN MODIFICATION agreement is different from a forbearance agreement. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan.
3. Negotiating with the bank for a modification of your home loan can be an overwhelming process for many homeowners.
FORECLOSURE SOLUTIONS "Helping People Find Solutions" 1624 Main Avenue, Clifton, NJ. 07011 Phone: 973-859-2315 ♦ Fax: 973-340-9482 Staff@ForeclosureSolutionsNJ.net
* Disclaimer: Foreclosure Solutions is a subsidiary of Nicholas Real Estate. Nicholas Real Estate and its representatives may not provide legal, tax or financial advice. Homeowners should consider all alternatives and consult with their attorney, accountant or other tax and financial advisor before making this important decision.
