5.Short Sale- Here is another abused tactic that is being pushed on homeowners by over zealous real estate agents (not all agents are like this) that profit from the sale of your home. Bottom line is that if you want to save your home, then this should be one of the last methods you utilize in the loan workout process. If you do not want to save your home and you have resigned to the fact that you are way in over your head, then by all means, find an experienced short sale agent (not just any real estate agent, but one with a proven successful track record) to assist you in dealing with your lender and getting your home sold.
A short sale is primarily used when all negotiations for a loan workout have failed and you are upside down on your mortgage, meaning you owe more on the mortgage than it’s worth. The lender basically agrees to cooperate in the sale of your home and take a loss. You place the home for sale and any offers that are obtained will be presented your lender. Unlike a traditional real estate sale when the homeowner decides what offer to accept or not accept. Your lender will control the negotiations and you will not be involved in the contract negotiation of the sale of your home.
Many lenders are severely back logged in their short sale departments. Many are simply not cooperating and making everyone’s lives very difficult. Remember they are now debt collectors and you owe them money on a contract and they plan to collect on that. They will not voluntarily stall the foreclosure process to allow you the time to complete a short sale. For information about getting all the time you need and stalling the foreclosure indefinitely, visit www.ForeclosureDefenseSecrets.com.
The housing market is the first level of the economy to turn around and with prices steadying and mortgage rates low, the chances of being successful in selling your property prior to a foreclosure judgment being entered against you. You need to be able to stall the foreclosure process for long enough to locate a buyer for your house. Learn how to buy all the time you need at www.ForeclosureDefenseSecrets.com.
In the past, getting the lender to approve a short sale was like pulling teeth, but in the current market, banks are becoming a lot more receptive to short sale offers. With mortgage rates near an all time low, more renters are attempting to be home owners and taking advantage of under-priced houses facing foreclosure. You can avoid foreclosure, save your credit, and sell your property via short sale. Find out how at www.ForeclosureDefenseSecrets.com.
This video is very accurate. While the person being interviewed is a realtor in Southern California, he does summarize the relationship between the banks and the borrowers quite well. The bank doesn’t want your home. They want you to figure out a way to make payments, even if the payments are discounted. The problem is that a foreclosure can move very quickly, if unopposed, and a loan modification or short sale can take a very long time. It is up to you to delay the foreclosure through legal opposition for long enough to get something worked out with the bank. Learn how to accomplish this goal at www.ForeclosureDefenseSecrets.com.
Foreclosures are not slowing down and the housing market continues to fall. The prospects of completing a successful short sale continue to diminish. Your house is worth more to you than it is to anyone else, including the bank. However, that will not stop the bank from foreclosing and taking your house from you. You need to be able to fight the foreclosure process long enough for the bank to modify your loan and allow you to keep your house at a much lower price. Find out how to accomplish this and save your home at www.ForeclosureDefenseSecrets.com.
If you can buy enough time to find a buyer for your house and to get your contract for sale approved by your lender, a short sale can save you from the long and arduous foreclosure process and the repercussions post-foreclosure. As you read my eBook “Foreclosure Defense Secrets,” I will walk you through how to use the short sale process to protect yourself from foreclosure, or even how to keep your home and avoid foreclosure altogether. Find out more at www.ForeclosureDefenseSecrets.com.
Rent Free Living
Most people mistakenly believe that foreclosure should be avoided at all costs. However, the truth is that foreclosure can be your best option in certain cases. Some homeowners will attempt to complete short sales and deeds in lieu of foreclosure, and that may be their best option, but the foreclosure process is a very slow one which will allow the homeowner to live rent free for as long as they are able to manipulate the system to their benefit.
Evictions
Some borrowers believe that the sheriff will forcibly throw them out on the street once foreclosure proceedings start. In actuality, foreclosure proceedings typically take several months from the time you first receive notice of your default and the time your home is put up for sale at a public auction. Even then, the new owner must follow state legal procedures to evict you, which requires at least some notice (sometimes up to another couple of months) and a court order.
Short Sales
While many homeowners will attemp to complere a short sale, they dont fully understand the consequences of one. A short sale occurs when you convince your lender to let you sell the property for less than you owe on it. The problem is that you have to move out upon the close of escrow, and you therefore give up the opportunity to live in the house for many more months, payment free. Also, you may be forced to pay taxes on the difference between the amount owed to the bank and the short sale amount since the IRS recognizes this difference as a capital gain.
Loss Mitigation
Once foreclosure proceedings have begun, negotiations with your lender must be successful prior to the date set for the foreclosure sale. Lenders often state right up until the date of a scheduled foreclosure sale that the negotiations are on track, and then pull out at the last moment. This isn’t necessarily a deliberate tactic. Rather, it may be a sign of disorganization as the left hand rarely knows what the right hand is doing. You should always be prepared to use the legal system to your benefit as opposed to waiting for the bank to do you any favors.
McCain and Obama fought it out for two hours tonight and very little was said about the foreclosure problem in the United States right now. While the economic disasters in this country were highly debated early on in the debate, most of the talk was of tax cuts and pork barrel spending. Neither of this topics have much effect on whether or not you or I get to keep our homes.
Soon after that, the topics quickly shifted to foreign policy which is fitting since it will be people from other countries that come in here and purchase your home after you fail to protect it from the bank. While most of our news outlets are reporting this economy as being a world crisis, the fact is that other countries’ economies are expanding as ours is contracting. India, China, and Australia are all doing well while we struggle here and it will soon lead to an increase in the amount of homes purchased by citizens of other countries.
While you may think that this creates more buyers for struggling borrowers to complete short sales, it actually will do the opposite. Most foreign buyers prefer to buy directly from the bank since the title is clear and the bank is willing to sell the property at a discount. The goal for borrowers seeking to sell their property should be to find buyers in this country that are looking for a bargain in a down economy but have the credit to support such a purchase.
Finding these buyers may take some time, which is why you need to buy as much time as possible when facing a foreclosure. You may need to extend the foreclosure process for as long as one or two years. Luckily, through the processes described in Foreclosure Defense Secrets, you can extend the foreclosure process for as long as you need. For more information, visit www.ForeclosureDefenseSecrets.com.