Foreclosures
"Foreclosures up 353% in S.D. County in 2007" read a recent front page headline in the San Diego Union Tribune. If you are one of the growing number of people facing possible foreclosure, you need to know your options. Friends and Realtors offer all kinds of advice but often do not know all of the options or even the right questions to ask. For example, do you know the answer to the following questions?
Is allowing the foreclosure the right option for you?
How about a deed in lieu of foreclosure?
What about a Short Sale?
Can a Bankruptcy save your house?
Is your first a money pruchase loan?
Is your second a money purchase loan?
Do the anti-deficiency laws protect you?
Will the Mortgage Forgiveness Debt Relief Act save you from a huge tax bill?
These are just some of the questions to which you must know the answer before you can make an informed decision regarding a possible foreclosure of your home. Most people have more than one option and it is important that you pick the best one for your situation.
Options:
One option is the Short Sale. A Short Sales is a sale of a home at less than what is owed and can be advantagous to many homeowners. While short sales are great for some people, they are not the answer for everyone because they are difficult to accomplish and often leave the seller owing a personal debt if not handled properly.
Another option is a Deed in Lieu of Foreclosure. This is an attractive option because the homeowner can walk away without going through the hassle of a Foreclsoure. A Deed in Lieu of Forclosure will often leave your credit in much better shape than a Short Sale or a Foreclsoure. Unfortuantely, lenders are often reluctanct to accept a deed in lieu of foreclosure.
Bankruptcy is also an option. A chapter 7 may allow you to wipe out all of your debt including credit card and start fresh. If you just behind on the house payment but would be able to afford it if you could catch up, a Chapter 13 might be an excellent way for you to maintain your home.
Often doing nothing and going down the road to Foreclosure is the best option. A person will likely get to stay in the home for six months or more during the Foreclosure process without making any payments during that time. The person can then use the money saved by not paying the mortgage to pay off other debt or just save the money. Some people will owe nothing after the Foreclosure. This, however, only applies to some people.
Beware:
You should be aware that there are realtor's out there that are trying to usher people through Short Sales without really knowing if it is the best option for a particular client. Often these realtor's are going past their expertise and venturing into the unlawful practice of law. You should consult an attorney whenever considering a short sale. Realtors are also apparently reccomending people quit paying thier first and second mortgages without knowing the true effect. If the mortgage is not a purchase money mortgage, the borrower will be personally on the hook for the money not paid.
There are also people out there looking to take advantage of homeowners facing foreclosure by promising them they can save their house. These tricksters usually get the person to sign the house over for a small amount of money. Luckily, there are laws to prevent or at least remedy this type of predatory practice.
How We Can Help:
With over 30 years of Real Estate Law experience, the Law Office Of Harold D. Thompson can help guide you through this process. Schedule a low cost 1 hour consultation with one of our attorneys. We will go over your options and help you find the best option for you to pursue. We can then help guide you through whichever option is best for you.
Contact our office today to find out how we can help you.
Is allowing the foreclosure the right option for you?
How about a deed in lieu of foreclosure?
What about a Short Sale?
Can a Bankruptcy save your house?
Is your first a money pruchase loan?
Is your second a money purchase loan?
Do the anti-deficiency laws protect you?
Will the Mortgage Forgiveness Debt Relief Act save you from a huge tax bill?
These are just some of the questions to which you must know the answer before you can make an informed decision regarding a possible foreclosure of your home. Most people have more than one option and it is important that you pick the best one for your situation.
Options:
One option is the Short Sale. A Short Sales is a sale of a home at less than what is owed and can be advantagous to many homeowners. While short sales are great for some people, they are not the answer for everyone because they are difficult to accomplish and often leave the seller owing a personal debt if not handled properly.
Another option is a Deed in Lieu of Foreclosure. This is an attractive option because the homeowner can walk away without going through the hassle of a Foreclsoure. A Deed in Lieu of Forclosure will often leave your credit in much better shape than a Short Sale or a Foreclsoure. Unfortuantely, lenders are often reluctanct to accept a deed in lieu of foreclosure.
Bankruptcy is also an option. A chapter 7 may allow you to wipe out all of your debt including credit card and start fresh. If you just behind on the house payment but would be able to afford it if you could catch up, a Chapter 13 might be an excellent way for you to maintain your home.
Often doing nothing and going down the road to Foreclosure is the best option. A person will likely get to stay in the home for six months or more during the Foreclosure process without making any payments during that time. The person can then use the money saved by not paying the mortgage to pay off other debt or just save the money. Some people will owe nothing after the Foreclosure. This, however, only applies to some people.
Beware:
You should be aware that there are realtor's out there that are trying to usher people through Short Sales without really knowing if it is the best option for a particular client. Often these realtor's are going past their expertise and venturing into the unlawful practice of law. You should consult an attorney whenever considering a short sale. Realtors are also apparently reccomending people quit paying thier first and second mortgages without knowing the true effect. If the mortgage is not a purchase money mortgage, the borrower will be personally on the hook for the money not paid.
There are also people out there looking to take advantage of homeowners facing foreclosure by promising them they can save their house. These tricksters usually get the person to sign the house over for a small amount of money. Luckily, there are laws to prevent or at least remedy this type of predatory practice.
How We Can Help:
With over 30 years of Real Estate Law experience, the Law Office Of Harold D. Thompson can help guide you through this process. Schedule a low cost 1 hour consultation with one of our attorneys. We will go over your options and help you find the best option for you to pursue. We can then help guide you through whichever option is best for you.
Contact our office today to find out how we can help you.