22 Şubat 2008 Cuma

Foreclosure Toolbox

The signs are apparent for any homeowner. Home foreclosure is right around the corner if you’ve fallen behind on repayment of loan and the house is serving as collateral. However there are tools available for these situations. Anyone who is facing the threat of home foreclosure needs loss mitigation services or the short sale option to prevent this from happening.

First line of Defense

Surprisingly, most homeowners and property owners are not aware of this term or the method involved with the process. That is not until they need to hire the service. But once an individual is faced with home foreclosure, there is very little choice but to seek the services of a mitigation specialist. As the sub prime crisis continues, there are an increasingly large number of Americans who are facing this situation.

Loss mitigation is a method through which one can stop the foreclosure of their home. Falling back on repaying the loan can happen due to several reasons. It can be due to some unexpected expense, some unforeseen health condition that requires spending lots of money or may be simply because planning out the monthly budget ended up costing huge amounts of money. Whatever may be the reason for falling behind on the payment of the loan money or the mortgage money, you should immediately approach a specialist’s assistance.

Pro Active Choices

The short sale in real estate occurs when the outstanding obligations or loans against a property are greater than what the property can be sold for. Short sales are a way for homeowners to avoid foreclosure on their homes and still be able to pay off their loan by settling with lender.

As always there are a few rules to use. Verify the value of your property. If you are selling the property through an investor, your broker will provide you with an estimate of market value. Determine the amount owed against the property. This will be the total of all loans against the property. Have the investor contact the lender. Some lenders are willing to work with you by reducing the amount owed or making other arrangements. The IRS often gets involved with short sales, because they are seen as a relief of debt and may be treated as income. Check with your accountant.

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