A foreclosure will happen when a property owner cannot make their mortgage payments on time. The bank will seek judgment to foreclose and take title to the property. The bank will seek judgment to foreclose and take title to the property.
Foreclosure Process
There are several points during the process in which the homeowner may to bring the loan up to date and stop foreclosure.
Approximately three to six months of no payments, the lender issues a Notice of Default (NOD) and a Lis Pendens on the property. The owner she is now facing foreclosure and May re instate typically until five days before the home is auctioned off.
If the loan is not brought up to date within three months, a foreclosure sale date is established. The homeowner will receive a Notice of summary judgment hearing.
The foreclosure Auction typically occurs on the steps of the county courthouse in which the property is located. The property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The winner of the auction will then receive the trustee’s deed to the property.
Foreclosure Auction
At auction, The lender sets the opening bid. This usually equal to the loan balance, any and all additional fees and attorney fees associated with Sale and foreclosure. If none bids higher than the opening bid, the property will be purchased by the attorney, for the lender and is considered REO or Real Estate Owned. This happens often due to the number of properties not worth what is owed to the lender.
STOP FORECLOSURE WITH Pre-Foreclosure Short Sale Short Pay off?
A short sale is the sale of a property where a lender allows the property to be sold for less then the total amount due. A successful short sale may provide a discounted purchase price for the buyer.
Criteria to be approved for Short Sale varies with Lenders but basics usually align. Borrower's ; 1. Financial status should be insolvent. 2. Cannot Financially afford home now and appears that this condition will not change in the near future. 3. Cannot Receive any proceeds from the sale of the home.
Why Would a Lender approve a Short Sale ?
Most lenders are highly motivated in this market to successfully negotiate a Short Sale to avoid the Foreclosure process. For Many Reasons;
Borrower can no longer afford the property.
Lender Does not want the bad faith associated with foreclosure unless absolutely necessary.
Lender is not in the Real Estate Sales business and does not want to incur the High costs of ; Court Costs, Attorneys costs, Maintenance Costs, vandalism, Lawn, Pool, Insurance, Taxes and a long lists of other holding costs for 6 months up to a year or more, marketing ans Sales commissions.
Properties current condition.
Costs to put the property in Sales condition.
Lenders ability to reduce it's non producing note portfolio and increase its lending credit line.
Lender Stock Holder Pressure to reduce Red ink and increase bottom line.
A Foreclosure is usually the Lenders Last resort. Contrary to common belief, Lenders really do not want to foreclose.
Hardship
Most lenders use hardship test that the borrower must pass in order to have a short sale approved.
A basic guide that can be used in attempting to effectuate a successful short sale. As you can see, it really is a "numbers game" with the lender in control.
How can I Save My Home from Foreclosure using The Short Sale Process ?
Contact an Attorney or Realtor Trained in Short Sale Negotiations. Do not attempt to work with someone who has spent a Sunday afternoon in a SS class. This is a very technical process and an inexperienced SS Negotiator may waste valuable time trying to catch up on their experience while inadvertently losing your only opportunity.
I have that training and experience with actual Short Sales and REO properties. I will apply my experience to your case and give you top service in a dedicated effort negotiating a successful short sale. This is one of my specialties. Some Realtors avoid Short Sales because of the work involved. I enjoy the challenge.
Will This Help My Credit ?
As soon Successful short sale is negotiated and closed, you credit score may start to become healthier right away. Short Sale should not show up as a Foreclosure on your credit . It is believed that a Foreclosure can drop credit score as much a 100 to 200 Points lower than Late payments and even Bankruptcy.
Not every homeowner facing foreclosure is a good short sale candidate. A giant step to getting a lender to consider your short sale proposal is to have as much information ready as possible to expedite the process.
Who pays your Commissions ? Other Realtors have said I have to pay up front !
The Bank pays the Realtor and the Short Sale Processors commissions at closing. If I cannot successfully negotiate a Successfully Short Sale, I do not get paid.
How can I Acquire a Pre-Foreclosure Property through the Short Sale Process for 5% to 50 % discount ?
Acquiring a Pre-Foreclosure through a Short sale process is easy if you are working with someone experienced in negotiating a Short Sale Successfully.
I have that training and experience with actual Short Sales and REO properties. I will apply my experience to your case and give you top service in negotiating a successful short sale. This is one of my specialties. Some Realtors avoid Short Sales because of the work involved. I enjoy the challenge. I usually have a verity of Pre-Foreclosure or REO listings available for you to choose from.
WE ARE NOT FORECLOSURE EXPERTS, ATTORNEYS OR ACCOUNTANTS HERE AND WE HIGHLY RECOMMEND THAT YOU PLEASE CONSULT AN ATTORNEY and ACCOUNTANT FOR YOUR PARTICULAR FORECLOSURE CIRCUMSTANCES.
