Last year seems to be repeating itself when it comes to the most relevant Real Estate and Foreclosure Related News. If you have been looking for Foreclosure or Bank Owned information online – you have possibly come across some recent headlines that tout the message loud and clear, plenty more foreclosures are on the horizon.
For many homeowners the message is a scary one, one that they never expected to face on the day that they moved into their homes. Do not let fear sideline you. Foreclosures do not happen overnight, they take time and plenty of it.
In New York, homes in the foreclosure process have mortgage loans that have been delinquent for an average of 600 days, Florida an average of over 500 days, California over 450 days. In other words, in many states it takes well over a year of delinquency before foreclosure occurs.
The lengthy process of foreclosure allows a home owner a lot of time to avoid foreclosure. The two best avenues to take are loan modification or selling short. Either choice will help avoid foreclosure and do less damage to a home owner’s credit report.
It takes perseverance to go through the loan modification process. The news has focused on the failure of Obama’s Making Home Affordable program, which failed to help as many people as the program intended to, partially related to the red tape involved and partially due to the inability of lenders to cooperate. What a successful loan modification does, however, is lower the monthly payments to an amount that the mortgagee can live with. When successful a loan modification is a beautiful thing.
A short sale is a viable alternative to foreclosure. While a lengthy process, on average about four months, a short sale typically takes far less time than a foreclosure. A short sale is completely at the mercy of a lender’s approval, but with the assistance of an experienced Realtor negotiating can typically be achieved.
The more foreclosures, the longer the process as the entire system gets backlogged. If you are facing foreclosure, use this time to your advantage and try to modify your loan to acquire affordable monthly payments or list your home for sale. If you can avoid foreclosure you will be glad you did.
We host confidential Short Sale Briefings in our Offices to give the most current Short Sale Related information – We are Head Quartered in the Santa Clarita Valley and operate with our Short Sale Negotiation within a 30 mile radius of the Santa Clarita Valley. Be safe.