Information and Solutions on Real Estate Foreclosure


When a homeowner purchases a home; the lender will secure a deed of trust out on the property for the amount of the loan; this action is taken to secure its investment on the property. If the homeowner fails to make the mortgage payment, the bank has the right to auction off the house to regain its interest in the property. If the bank cannot receive all the debt owed to them at the auction, a deficiency judgment could be granted and the bank could hold you personally liable for the debt that was not recovered. Both a foreclosure and a deficiency judgment have serious consequences to a homeowner financially and could disqualify the homeowner for any type of loan in the future. Let us help You...

The foreclosure will remain on your credit report for the next five-to-ten years. A notice of foreclosure indicates to all creditors that a person is a high-risk for not paying back debts. The risk is so high, that majority of times it will cause a person not to be able to obtain any sort of loan.

The foreclosure will remain on your credit report for the next five-to-ten years. A notice of foreclosure indicates to all creditors that a person is a high-risk for not paying back debts. The risk is so high, that majority of times it will cause a person not to be able to obtain any sort of loan.

Any time a person will be applying for a rental application the foreclosure will be evident. This can make it very hard to even rent a property and provide a family with a place to live. If a person with a foreclosure is approved for a rental agreement, they often will have to provide the landlord with an astronomically high down payment to secure their interests in the property.

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan.[1] It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.[2]

In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment. Borrowers are able to mitigate damage to their credit history, and partially control the debt. A short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer. Lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from an appraisal, Broker Price Opinion (abbreviated BPO), or Broker Opinion of Value (abbreviated BOV). Lenders may accept short sale offers or requests for short sales even if a Notice of Default has not been issued or recorded with the locality where the property is located. Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from mortgage failures that in part triggered the financial crisis of 2007–2010, they are now more willing to accept short sales than ever before. For "under-water" borrowers who owe more on their mortgage than their property is worth and are having trouble selling, this presents an opportunity for them to avoid foreclosure as a result.

 

The judicial foreclosure process is used if there is no power of sale clause in a mortgage deal. This foreclosure process is done by filing a lawsuit to obtain a decree of sale from the court. Once the court approves the decree of sale, the property may be sold at an auction to the highest bidder.

The judicial foreclosure process is used if there is no power of sale clause in a mortgage deal. This foreclosure process is done by filing a lawsuit to obtain a decree of sale from the court. Once the court approves the decree of sale, the property may be sold at an auction to the highest bidder.

Whether you should do a short sale or let the home go to foreclosure depends on several factors. While for some homeowners, it is easier to throw up your hands and let the bank take your home, that might not be the wisest thing to do.

Here are a few benefits for doing a short sale that may not have occurred to you:

  • You are in control of the sale, not the bank
  • You may sleep better at night knowing who is buying your home.
  • You will spare yourself the social stigma of the "F" word, foreclosure.
  • Contrary to popular belief, you can be current on your payments and still effect a short sale.
  • Your home sale will be handled like any other home sale. More...

 

Sound Real Estate Network Statement


Sound Real Estate Group is here to provide you with the best option for your property even if you are in or going to be in foreclosure. Check out your options carefully by our carefil analysis and statistics concerning your property. We have assistec many property owners through out the Puget Sound area from Seatte, Bellevue, Kirkland, Redmond, Renton and Kent areas and much more, More info contact us..