Foreclosure Options

 Posted on November 04, 2011 in Foreclosure

In today's uncertain real estate market, many individuals and families are facing foreclosure. There are a variety of options available to those who are currently in foreclosure proceedings or are making high monthly payments on a mortgage that is for more than the value of the house or property. Some of the most common options are listed below:

1.Sell the house if you have equity. If someone has enough equity to sell and cannot afford the house it may be time to get something smaller or even rent. Economists are torn as to when and if the housing market is coming back and many homeowners have been thinking for years it will come back as value continues to decline.
2.Loan modification is a great option for many. It does generally require a default to get the lender to listen. The stories folks hear about the banks loosing paperwork and offering modification that are unrealistic and unreasonable are common. Loan modification is a good alternative if you qualify. You could have your rate potentially cut in more than half and in some circumstances the bank may even reduce principle. An attorney should be hired for the loan modification process that is experienced in loan modifications.
3.Short Sale works for many. A short sale allows you to sell the home and often times the bank will let you out of the debt but not all the time.
4.Deed in lieu of foreclosure should be one of the top options but unfortunately we find that banks are not very helpful and cooperative with this option.
5.Walking away from the house is a common option in todays troubled times. If you are going to walk away you should talk with an attorney as you may be making the wrong decision.
6.Renting the house could be an option or taking on a roommate can help with expenses.
7.Consent foreclosure is like a deed in lieu once the foreclosure process starts and the banks seem to be more interested in consent foreclosures then deed in lieu.
8.Combination of the above is often a good option as well.