Foreclosure or Short Sale Real Estate
Alternatives to Foreclosure in Cobb County and Metro Atlanta
You’ve come to the right place. As a Certified Distressed Property Expert® (CDPE), we have devoted a significant amount of time to educating ourselves on all the options that are available to homeowners in danger of losing their home to foreclosure. This training has taught us how to recognize the best option for every homeowner’s unique situation as well as how to complete the processes involved in the most efficient way possible.
Let us help you learn your options!
Foreclosure is a devastating and financial challenge that can often be avoided. You actually have many options when it comes to seeking relief from challenging housing payments. Below are some of the options that may work for you!
What is a Short Sale?
Generally considered one of the most viable alternatives to foreclosure, short sales allow homeowners to minimize financial damage and move on from a burdensome, unaffordable mortgage. In many cases, short sales allow borrowers to qualify for a new mortgage in as little as two years, as opposed to five years or more after a foreclosure.
A reinstatement is the simplest solution for a foreclosure, but often the most difficult to achieve. The homeowner simply pays the total amount past due (including late fees) to the lender.
A forbearance, or repayment plan, involves the homeowner negotiating with the mortgage company to allow them to repay back-payments over a period of time.
A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these.
Deed in Lieu of Foreclosure
Also known as a “friendly foreclosure,” a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process.
Rent the property
This option requires the homeowner’s ability to rent the house for enough money to cover the monthly mortgage payment. The property owner also must not be past due on their mortgage and facing foreclosure.
Service members Civil Relief Act
If a member of the military experiences financial distress due to deployment—and their debt was entered into prior to deployment—he or she may qualify for relief under the Service members Civil Relief Act.
Many believe bankruptcy is a “foreclosure solution,” but this is only true in some states and situations. Entering bankruptcy can be a risky and costly process. Be sure to seek the advice of a qualified bankruptcy attorney when pursuing this as an option.
Refinancing means you will acquire a new loan based on your current credit standing. If you have already missed mortgage payments, your credit score may make it difficult to find a loan with cheaper payments.
Short Sale vs. Foreclosure?
Why Would a Bank Accept a Short Sale?
It can sometimes seem to go against everything we are taught about borrowing money, but in today’s market, banks will gladly go accept a short sale as an alternative to foreclosure. Here are three reasons why these factors combine to make a Short Sale the best solution for the bank.
In a Short Sale, the bank never owns the home
– It is often overlooked, but this is one of the major reasons why banks prefer short sales. Having to take back the home and then sell it at auction is a major undertaking that can be expensive. In a short sale, there is already someone who wants to buy the home so that hassle is taken care of.
In a Short Sale, the home is generally in better shape
– It is a sad fact, but when people are about to lose their home to foreclosure, they will sometimes try to distance themselves emotionally from the home in order to cope. This can lead to the home not being taken care of, which makes it that much harder to sell. In a short sale, the seller is being proactive and is generally more responsible.
In a Short Sale, the bank gets more money
– Ultimately, this is the main reason. Even though the bank is not getting the full amount of the loan, the amount of the average short sale is almost always significantly more than what they can sell a foreclosed home for at auction
When you are considering your options, please consider using us, a Certified Distressed Property Expert® (CDPE). Take advantage of your options and Call Us today to get started on turning your financial challenge into financial stability!
Contact us to discuss Alternatives to Foreclosure in Cobb County and Metro Atlanta.