Although you planned and saved for years, life threw you a curve and now you have either missed or you’re at risk of missing mortgage payments, and perhaps even falling into foreclosure. If you find yourself in this financial distress, you may have options to foreclosure, including loan modification refinancing or short selling your home. In order to proceed using any of the options, you should enlist the services of a Real Estate Professional that has been trained and has experience in exploring and explaining the options you may have available to assist you through the process to arrive at a private successful stress-free conclusion.
YOU DON’T HAVE TO GO-IT ALONE! … Our Team of qualified experience Real Estate professionals are available to assist you in this process along with Attorneys, Accountants and other Financial Advisors. We will assist you in completing the necessary paperwork, assembling the required documents and negotiating directly with your lender(s) on your behalf.
There are a number of options available to homeowners who are in mortgage default including: Refinancing, Work Out Process/Loss Mitigation, Special Forbearance, Loan Modification, Partial Claim, Pre-Foreclosure (Short) Sale and Deed-In-Lieu of Foreclosure. We will sit down with you to explore and explain each option that may be available to you and prepare the necessary paperwork and negotiate with your lender.
Look for a Short Sales and Foreclosure Resource rather than a Neighborhood Specialist. One of the most common mistakes that homeowners facing default make is to contact the well-known, familiar, neighborhood Realtor for assistance in dealing with their situation. Homeowners can easily find hundreds of agents eager to list their homes, but finding a qualified Specialist is more difficult. That's because a Short Sales and Foreclosure Resource Agents do a lot more than slap the listing into MLS and plop a sign in the front yard.
We know firsthand what it takes to successfully negotiate with lenders and, quite frankly, short sales are a ton of work. Novices should not handle this aspect of Real Estate.
The Kentucky Homeownership Protection Center is the only statewide assistance program established by the Kentucky state government in 2008 to address the foreclosure crisis in Kentucky and provides free counseling on the options that may be available to you. Some Kentuckians may also be eligible for free legal advice through the Protection Center’s partnership with Legal Aid. LEARN MORE>
When financing options are not available, you might consider short selling your home. A Short Sale has become a common solution for homeowners who do not qualify for other options and are looking for an alternative to foreclosures. For many homeowners, it is a preferred way to help eliminate debt and get back on their feet.
However, in some instances short sales can lead to more complications than benefits. This is why it is important to enlist qualified professionals that can guide you through the process. In addition to qualified Real Estate professionals, our Team also includes Attorneys, Accountants and other Financial Advisors.
It is important to understand the differences between a short sale and a foreclosure. In a short sale, the homeowner still owns the property; in a foreclosure, the bank owns the home. Foreclosures often occur if a homeowner fails to short sell their home. BEWARE that both short sales and foreclosures diminish credit scores, but short sales are generally easier to recover from.
ADVANTAGES OF SHORT SELLING
A short sale is preferable to a foreclosure in terms of a credit record and future home-buying options. In the case of a short sale, the homeowner may be able to obtain a home mortgage loan in as little as two years as opposed to seven for a foreclosure.
DISADVANTAGES OF SHORT SELLING
After short selling a home, the borrower may still owe their lender(s) a deficiency which is the difference between the net proceeds for the sale and the loan balance amount.
Another disadvantage of short selling is damage to the borrower's credit score, although the damage is easier to recover from than it would be in a foreclosure.
The borrower must also vacate as soon as a short sale closes and so must arrange a place in which to move.
Mortgage scammers strike when you’re most vulnerable, and for good reason: They understand the more desperate you are, the less convincing they’ll have to be and the less likely you are to delve deeper into the details of their charade. It’s not overly difficult for scammers to find their targets. Foreclosures are recorded in county real property records or public court filings. As soon as the foreclosure is filed, the information becomes public and anyone can look it up.
It can be difficult to see these scams coming, especially when the perpetrators put so much thought and effort into duping you. But there are some warning signs that all is not as it seems, and the ability to identify these red flags can save you some serious money, time, and heartbreak. These scammers will act like they have your best interests at heart, when really their mind is on your money—and sometimes even the deed to your home. LEARN MORE>
MAKING YOUR FINAL DECISION
Deciding whether to use the Short Sell method requires significant time and thought. The choice will be affected by several different factors, such as how much the borrower still owes on the mortgage(s) and whether their lender(s) will seek deficiency judgments. If they do the borrower may still owe a significant amount after the short sale is completed. A Foreclosure may be the preferable route, only because it may protect the borrower from future liability for a deficiency.
DON’T GO IT ALONE. Whatever your decision, enlist Professional assistance to help navigate through the process. Once a “Notice of Default” is delivered, Time is of the Essence to correct the situation. The sooner your problem is addressed, the better the chances of resolving it.
Not every real estate agent is equipped to do this, so look for a Professional who is a Short Sales and Foreclosure Resource and has the training and experience to see the process through to a successful completion.
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