Few things are more stressful than the thought of losing your home. Often people are faced with the possibility of foreclosure because of reasons beyond their control like sickness or unemployment. Despite this, many are embarrassed to be in such a situation and won’t ask for help. This is unfortunate because, in many cases, I could help them avoid serious damage to their credit.
The ideal situation would be to avoid foreclosure by bringing payments up to date. There are many online resources to help avoid foreclosure but there are also lots of misinformation and scams. In Tennessee, the THDA can help with foreclosure prevention. Kentucky homeowners facing foreclosure can find assistance from the Kentucky Homeownership Protection Center.
Aside from keeping the home, the reason to avoid foreclosure is to preserve the credit rating of the homeowner. Perhaps circumstances will change in a few years; a past foreclosure will make it more difficult to obtain financing.
If financial situations make it impossible to catch up on the mortgage then selling the house may be the best option. Under most circumstances, up until the moment the lender sells the property (often at auction) there is a possibility of avoiding foreclosure. The sooner I can get involved, the better. With the homeowner’s permission, I can contact the lender to discuss this situation to find out what the total payoff would be for the mortgage and what the lender is willing to do to delay foreclosure.
The good news for homeowners is that prices are up and there is a great demand for homes. Often homeowners are surprised to learn that their home is worth much more than they paid for it. I can provide a free comparative market analysis (CMA) for any homeowner who wants to know what their home is worth in the current market.
By working with the lender, I may be able to delay foreclosure by showing that the home is being marketed for sale in a good faith effort to pay off the mortgage. In this market, if a home is priced right, it is likely to sell quickly. Even if the home is in poor condition there are still buyers who may be interested in the property as an investment opportunity.
What if the mortgage payoff is simply more than the home is worth? There are still options. I can discuss the possibility of a short sale with the lender. In this situation, the lender agrees to allow the home to be sold for less than what is owed on it.
A short sale will be reported to credit bureaus but usually it will be much better for a borrower than a foreclosure. An important note, there may be tax implications and other obligations created through a short sale. I cannot provide advice in the these areas but I can help you find an expert to help.
Regardless of the circumstances, the sooner a homeowner looks for help, the better. I am always happy to discuss options with homeowners. If you know of someone who needs help, please have them call me on my cell at 615-504-7425 or at my office at 615-672-6729 (be sure to ask for Becky).