Foreclosures: Know Your Options
A foreclosure is a process in which a bank, or lender, takes possession of a home owner’s property, usually due to the inability of the home owner to make payments. After a home owner misses payments, a notice of default is placed on their home, which begins the foreclosure process. In three months, the a notice of trustee sale date is issued. After that date, the home is either sold to a third party or taken into the bank’s possession.
What are the disadvantages of a foreclosure?
Not only does a home owner lose his or her home with a foreclosure, but the home owner is responsible for the remainder of the debt owed on the loan after auction or sale to a third party. In some cases, this can be a few hundred thousand dollars still owed, forcing some home owners to file for bankruptcy as well. Furthermore, the home owner’s credit rating will be lowered (250 points on average) and will not recuperate for about 7-10 years.
What are the advantages of a foreclosure?
Unfortunately, relative to other options available for distressed home owners, there are not many advantages to allowing your home to foreclose. Considering the impact on your credit, the loss of property, and the potential debt still owed, a much more appealing option will be to find an agent to perform a short sale. A short sale does not affect your credit as much, or for as long as a foreclosure. Furthermore, any remaining debt owed after sale of the house is cleared and the home owner is no longer liable. In fact, at Wealth Realty, we have been able to get home owners up to $35,000 back from the bank as well.
How can I learn more?
For more information on short sales or to find out if you qualify, feel free to contact Wealth Realty at (626) 600-2307 or email at rima@wealthrealty.org. The information and services we provide at Wealth Realty do not cost you a penny, but the safety and reliability in working with our agents is priceless. At Wealth Realty, your comfort is our primary concern.
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