Avoid Foreclosure
If you are having difficulties making your mortgage payments, don’t wait until its too late. Foreclosure is not fun, you don’t want it and believe it or not neither do lenders.
There are alternatives to getting your home foreclosed, for example you can try to get a forbearance from the lender where in you can ask for a temporary suspension or reduction of your monthly mortgage payment. You could also sell your home and move into a less expensive apartment, you could refinance your loan, or you can do what is called a short sale if necessary.
Here is an explanation of what the short sale is all about. When the supply of money was plentiful, and credit was easier to get, lenders over extended by allowing home buyers to borrow more money than they could comfortably afford to pay back.
Foreclosure consequences
The keyword here is comfortably. Lenders do not knowingly lend money to undeserving individuals, however, the amount of loans they extended to home buyers left small room for homeowners to manuever around when their financial situation changed. This resulted in financial difficulties, when a significant change in the overall economic situation occured.
An example of this is if you obtain an adjustable rate mortgage and subsequently interest rates go sky high leaving you with payments more than you can afford. Assuming that you find yourself in this situation, you may want to sell your home to get yourself out of this financial situation, because your income can no longer keep up with the higher mortgage payments.
However in today’s market in can take a considerable amount of time to sell your home in which may be longer than the time you have to bail yourself out. There fore you may be forced to sell your home at a lower price that what you still owe on it. In this case we have what we call a short sale. This is where the approval of the lender would be required to consummate the sale and the transfer of the title of the property.
This is where you can get help from an associate broker. They can help you work through the loops of handling a short sale disposition of your home if other options fail. An associate broker is not in the business of buying homes, however many will not charge you a fee for the assistance that you will receive that goes beyond just selling your home. An associate broker will only charge you a commission when they have sold your home, much in the same manner as a traditional sale of real estate.
The main difference is that an associate broker will have the expertise in dealing with short sales.
So if you find yourself facing a possible foreclosure and have exhausted all other means of saving your home, it would be advisable to find a local associate broker who can assist you in selling your home if it means preventing a foreclosure.
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