Now, we are not talking about doing anything illegal. There is a way to successfully beat foreclosure. There are systems that have been set up to work! Short sales and "Deed in Lieu" have replaced these numbers incredibly, infact they have increased 126% over foreclosures from last year. I am amazed when a client says they did not know.
Unfortunately, there is so much reported through the media that conflicts daily as to what can and cannot be done when you are a property owner with hardship and you are unable to make the mortgage payments. Believe it or not, the bank knows what they are doing. The property owner does not. I personally attend seminars and webinars with top financial institutions and organizations weekly just to stay up with the changes.
Quite simply, the bank does not want a house to sell. They want to get your delinquent file off their plate and move on, and so do you. By allowing a short sale or deed in lieu to take place, you have prevented a foreclosure which affects your credit rating for 7 years. The short sale and deed in lieu are currently reflecting credit ratings for about a two year period after completion. Why would you choose a foreclosure ?
The short sale and deed in lieu are worked on together. Most financial institutions require you to have your home listed with a Realtor who has counseled you on true market value and assisted you with preparing a Short Sale package. The short sale package includes your current and past two year financial history to show why you are unable to make the required current mortgage payments. The forms are very self explanatory and give you a format to follow to put this information together.
When a buyer makes a reasonable offer on your property, after your approval, the offer is submitted by the Realtor to the financial instutions for approval of the sale and they coordinate the closing.
How difficult is this? Unfortunately, a Realtor and trained negotiator work together with many emails and phone calls to complete this transaction but you the seller become the "WINNER". It has been the most gratifying feeling to me as a Realtor to close on these transactions as the Seller is saved from foreclosure and the Buyer has a great buy! WIN WIN!!