FORECLOSURES

A foreclosure is when a leinholder of a property uses a legal process to force the sale because the borrower has defaulted on the loan. This can happen when someone takes out a mortgage to buy a home and then stops making payments. When a home is foreclosed on, a lender will take back the property and try to sell it to recover their loss. Mortgage loans are secured by real estate which is the asset used as the collateral for the loan.

The violation of the mortgage is a default of the required payments of a promissory note which is secured by a lien  on the property. If foreclosed, the lender sells the property and keep the proceeds to pay off its mortgage and any legal costs. If the sale does not bring enough to pay the existing balance of principal and fees, then the mortgagee can file a claim for the deficiency in funds. Deficiency judgments include the loan principal, accrued interest and attorney fees less the amount the lender bid at the foreclosure sale.

AVOID THE FORECLOSURE PROCESS

• Reduce the Hit to your Credit from Being Delinquent on your Payments
• Avoid a Deficiency Judgement if Possible

SHORT SALES

A short sale is a real estate process whereby the homeowner can avoid having to go through foreclosure process. The parties involved come to an agreement where your lender is takes a loss rather than going through the lengthy process of foreclosure. Obviously, it depends upon the difference between the "short" sale price and the balance owed.

It is important to work with an experienced real estate agency that knows the ins and outs of short sales. An experienced realtor has the required background to help make sure your credit rating does not suffer excessively and that you complete the sale quickly. We will advise you of the pros and cons, enabling you to make an informed decision with no surprises at the end.