The current U.S. housing market and financial crisis have caused tremendous stress and heartache for families across America. During times like these, there are always a certain percentage of homes or homeowners who are distressed. According to the Mortgage Bankers Association®, as many as 1 out of 10 homes are either delinquent or in foreclosure, and unfortunately, 7 out of 10 homeowners in foreclosure proceed without the assistance or advice of real estate professionals or mortgage representatives. If you or someone you know is among the millions of people affected by the prospect of foreclosure, understand that you have options.
In the past, it was rare that a bank or lender would accept a short sale, However, due to the overwhelming market changes, lenders have become much more negotiable when it comes to these transactions. Recent policy changes within many organizations have made the chances of getting a short sale approved even higher.
The Basic Foreclosure Process
- Default - homeowners must miss a payment or default on payment for the property to enter the foreclosure process.
- Legal Notice - the lender of the foreclosing property must notify homeownerss that they are entering into the foreclosure process.
- Bank Sale or Auction Date - homeowners are informed that they have a bank sale or auction date at which point the foreclosing mortgage company will gain control of the property.
- Redemption Period - the period of time in which homeowners may present payment to the bank and regain possession of their property. (Not all states have a redemption period.)
The following information describes
the short sale process:
- Homeowners are "short" when they owe an amount on their property that is higher than the current market value.
- A short sale occurs when a negotiation is entered into with a homeowner's mortgage company to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is "sold short."
For more information, please don't hesitate to Contact Us. Time is of great importance when you're facing foreclosure on your home.