Dealing with foreclosures, short sales and bank owned properties
This website was designed as a preliminary tool for individual, immigrant and investor awareness. It is filled with sources of free information. We do not make any claims regarding the accuracy of information found in this website. Additionally, you should not rely on the information provided herein as some of the information may be outdated. You should consult with licensed attorney and other licensed professionals such as accountants and realtors before making any final decision.
The landscape of today's real estate market has dramatically changed. The increasing number of houses for sale, unemployment and difficulty to obtain financing has caused a tremendous drop in the price of homes and condominiums throughout Florida and the rest of the United States. If you are a homeowner who got caught in the real estate market web, there are numerous sources of relief in today market which can save you from foreclosure.
Loan Modification
The first thing you can do to save your home is to reduce your mortgage payments. There are many programs available for homeowners who owe more money than their property is worth. You will need to contact your lender in order to find a program that works with you. Please note that these programs are generally available only to individuals who are already late on their payments.
Short sales
If you are trying to sell your home but you are not successful because you owe more money than your house is worth, you can try to apply for a short sale. What this means is that you will solicit a sales contract for a price less than what you owe. Once you have a signed offer, you then bring that offer to your lender and ask you lender to release the mortgage for the amount of the offer received. In order to obtain assistance with the same, you should seek the help of a realtor who specializes in short sales. Please note that these programs are generally available only to individuals who are already late on their payments
Deed in lieu
Another solution that you may have is to offer the property back to the bank in stead of going through that foreclosure process. This is know as a deed in lieu. The advantage for the lender is that is saves them the time and money related to the foreclosure process. The advantage for the homeowner is that they can wipe out their debt in exchange for deeding back the property.
Already in Foreclosure
Here are some tips you should know:
- In order for a lender to move forward with the foreclosure process, they will need to provide an original copy of the note and mortgage. Due to the fact that mortgages are sold on the secondary market, most lenders do not have the original documents. As such a borrower facing foreclosure should have the lender produce the original documents.
- Foreclosure is an equitable relief and it will require the lender to have "cleans hands." In many cases today, lenders do not have clean hands in their lending practices.
- You may have counter-claims that you could file against the lender which may help you find an agreement with the lender.
- If you have no assets, you may decide to file for bankruptcy. Bankruptcy will stop the foreclosure temporarily.
