Foreclosures:

Home Foreclosures Jump in Winchester

Foreclosures and Short Sales

• What is Foreclosure
• Avoiding Foreclosure
• Foreclosure Websites- properties for sale

Foreclosure
Foreclosure is the legal process used by a mortgage holder to obtain legal title to a property in default. In plain English that means when a homeowner stops paying on a mortgage, the bank/lender uses the foreclosure process to remove the homeowner and regain possession of the property. The bank/lender will then resell the property. Foreclosure has a very negative effect on the homeowners’ credit and should be avoided if at all possible.

How to avoid Foreclosure
• A short sale of the property
• Loan Modification

Short Sales
A short sale is the sale of the property by the homeowner for less than the amount owed on the property. In this case the homeowner lists the property with a realtor and obtains an offer on the property for less than the amount owed. The homeowner does not have the deficiency amount available so the homeowner asks the lender to accept less money than they are owed. The actual process is quite complex and the “asking” the bank to take less money involves giving the bank a comprehensive financial package to make the decision. This process requires a skilled realtor experienced in short sales who is willing to help the homeowner prepare the short sale package. It also takes 30-60 days to get an answer back from the bank. This process will negatively effect a homeowner’s credit also. As a licensed realtor, experienced with short sales, I would be happy to address your concerns and answer your questions about this process.

Loan Modification
Loan modification is a change in the loan terms that provides the homeowner with an adjustment of the loan terms that allows the homeowner to stay in his home. This process requires patience and a lot of documentation as well. Each lender is different and the decisions tend to be made on a case by case basis. Loan modification can be short term or long term (permanent adjustment) and can involve lowering interest rates, fixing interest rates and occasionally principal (loan balance) adjustments. Call me and I will provide you with more guidance on this process.

Foreclosure Websites- Properties to purchase
There are numerous foreclosure websites offering foreclosure listings. Most are subscription websites that require payment of a monthly service fee. Local multiple listing services have the greatest number of properties. You can link through this website to full access to the local multiple listing service under “property finder”. A licensed Realtor can help you identify foreclosure and short sale opportunities. Also these websites are government websites that list some foreclosures: www.hud.gov and www.homesales.gov.