How to Avoid the Sting of Foreclosure
The housing industry has been showing signs of improving, yet are all homeowners out of the woods?
Reports show the reported unemployment rate has declined, however the number of unreported individuals who have lost their qualification for unemployment benefits and those that have simply given up trying to find work are making the unemployment numbers in reality much higher and staggering. This likely means that there are still a great deal of homeowners suffering, almost in silence.
What about the homeowners who have been in some stage of foreclosure for years while living in their homes not making any mortgage payments? Are we hearing that Lenders will begin to accelerate the foreclosure process and bring the gavel down on these delinquent homeowners?
In fact, here in South Florida and Broward county where homeowners have been hit hard with foreclosures over the last 5+ years have seen an increase in foreclosure filings during February 2015 and 5% higher than the same time last year.**
What can you do to avoid foreclosure? 5 top things to do now:
It isn’t an easy time for so many suffering from not being able to make mortgage payments, however there are things that homeowners can take to get on the road to a speedy recovery.
The Top 5 things to do:
1. Decide to sell your home as a Short Sale
Actually coming to the decision that a Short Sale is the route you should take to avoid foreclosure is often the most difficult decision any homeowner will make. It’s not easy to leave one’s home and quite often denial will set in before homeowners realize it’s not going to get better anytime soon. Simply hoping that things will get better so you don’t have to deal with it as if to bury one’s head in the sand is never a recommended course of action.
2. Hire a REALTORⓇ who knows Short Sales
This can make all the difference in the world on whether your home sale would be a “long” sale or a “short” sale, time wise.
A Short Sale is indeed handled differently than a traditional Real Estate sale. Short Sales require a lot more work than a traditional Real Estate sale and it also requires a REALTORⓇ who is committed and determined to gaining Short Sale approval along with a homeowner’s release of any deficiency balance (balance left on mortgage after the home sells).
It requires getting the correct financials from the homeowner up front. It requires knowing what steps are involved during the Short Sale process and following up to make sure all is moving along efficiently towards Short Sale approval.
Time and time again I hear people refer to Short Sales taking 6 months or longer. When you know what you’re doing, Short Sales won’t take 6 months. 3 months is usually the longest it takes to gain Short Sale approval. I’ve been negotiating Short Sales since 2008 and I’m happy to report on quick approval times and high closing ratios. Quick approval times and high closing ratios are what you need to look for when a Short Sale REALTORⓇ represents you to sell your home as a Short Sale. In fact, a recent Coral Springs Short Sale of mine was approved in just 32 days.
3. Communicate with your Lender
Never avoid communicating with your Lender. Silence is not golden when you need your Lender to understand your circumstances. It’s important to communicate with your Lender so they know your particular situation. They will let you know what your options are going to be and how to go forward. You want to make sure that you have exhausted all of your options to save your home from foreclosure. Perhaps you know that a Short Sale is indeed your choice, then it’s important to advise your Lender of your decision as long as you qualify for a Short Sale.
4. Be prepared to provide your financials
Most recent financials that include such things as pay stubs, bank statements, tax returns, financial worksheets and a hardship letter are just a few of the documents that a Short Sale Seller needs to be prepared to provide. Timely submission of any requested document will keep a Short Sale moving along quickly. In fact, all of these documents should be presented before your home is even listed for sale as a Short Sale. I will review said documents to confirm the homeowner is eligible to be considered for a Short Sale.
5. Plan to buy a home again
Yes, you heard me! Plan to buy a home again. With the proper planning, you will be in the position again to be able to buy a home again. Pay your bills on time, clean up your credit, save for a deposit and money needed to be a homeowner in order to maintain a home. Learn more about borrower eligibility after a Short Sale.
In a nutshell
Follow this advice and you too can avoid the Sting of Foreclosure. Don’t delay, find out now if a Short Sale is right for you. The quicker you act, the sooner you will be on the road to recovery.
If you have questions on whether you should sell your home as a Short Sale, pick up the phone now and call me, Lynn Pineda, at 954-464-1100 or if you prefer email, you can email me at LynnP@ImagineYourHouse.com
Today’s article “How to Avoid the Sting of Foreclosure” written by Lynn Pineda. You’ll find Lynn selling homes in Southeast Florida in the cities of Coral Springs, Parkland, Margate, Tamarac, Coconut Creek, Boynton Beach, Delray Beach, Boca Raton, Sunrise, Plantation, Ft Lauderdale, Pembroke Pines and Miramar areas within Broward and Palm Beach counties.
Lynn Pineda, a licensed Southeast Florida Real Estate Agent serving Coral Springs Florida and surrounding Southeast Florida. Keller Williams Coral Springs Realty. March 26, 2015. Real Estate Promises Delivered. You can speak with Lynn by calling/texting her at 954-464-1100 or you can email her at: LynnP@ImagineYourHouse.com if you need to sell or buy your Southeast Florida home. Your local, trusted professional when it’s time to buy or sell your home. Real Estate promises delivered.