In today's economy, many people are facing hard times, losing their jobs, homes, memories and self-confidence. One of the hardest things to do nowadays is to keep the home they've made their family history in. Letting go is a hard to do.
There are many avenues in which a bank, having a security in the property that people own, through their mortgage, is to either foreclose on the property through a trustee's sale, get a property back in lieu of foreclosure or a short-sale.
It is to the best interest of banks to try to keep the loan they have now with their current clients, as it is more expensive for the bank to foreclose or short-sale a property. This is, of course if the mortgagor (property owner) qualifies to get a loan modification and also get a 2nd chance in keeping the home.
What most people fail to realize, is that, a loan modification is geared for those, who are able to make payments on the modified plan, based on the current value of their home. Some restrictions to apply, so the bank holding your mortgage should be consulted before you take drastic measures.
One of the more better options for a home-owner in distress is to talk to a financial counselor in the hopes of deciding what is best for them. A HUD approved housing counselor can do just that. The number is 888-995-HOPE.
The other, better alternative to foreclosure is a short-sale, which allows a borrower to sell the property, despite current market values and loan amounts. A short sale gives the seller an opportunity to eliminate mortgage debt, and get a fresh start. Some restrictions apply, after all, the banks have to evaluate the amount of loss they have to take, and whether a borrower qualifies. A seller/borrower will in most cases, be able to close escrow without any further out-of-pocket expense. Additionally, the bank may give compensation to homeowners for moving expenses.
Fore more information on whether a short-sale is an option for you, call Nelli Derderian at (818)414-0513 for a FREE consultation.
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