Top 5 Common Strategies to Avoid Foreclosure

By
Real Estate Agent with Solid Source Realty GA 320764

Many home owners have faced the possibility of bank repossession but found ways to prevent it. What Are the  5 Most Common Strategies People Use to Avoid Foreclosure?

 

strategies to avoid foreclosure

There's a saying every Georgia real estate agent learns early in their education process: "If you can't pay, you can't stay." This is referring to the historically speedy Georgia foreclosure process.

 

When facing the worst, many distressed homeowners can avoid foreclosure if they do a little research and get expert help sooner rather than later.

 

Oftentimes, the true cost of foreclosure means more than just losing a property. The process usually comes with unpleasant baggage -- long-term consequences on your credit, your self-esteem, and your family’s well-being.

 

Ever wonder about the options?

 

The good news is that there usually are other solutions available that might help you avoid foreclosure. The secret is to take action before it’s too late. Depending on your situation, here are five very common scenarios that others have used.

 

The first three options are where most people start,

...depending on whether they are too far behind on their loan, as well as on their ability to pay:

 

1 Mortgage Modification

 

This has been the most sought-after solution in recent years, but not the most successful in the long run. Through some programs designed to help homeowners in distress, you may be eligible to modify your loan to reduce the principal and/or lower monthly payments. These programs vary from bank to bank, as do successful results.

 

2 Reinstatement

 

Has the reason you missed your payments now been resolved? Then you might make one big balloon payment that includes all missed payments, legal fees and late fees, and thereby bring your loan current and qualify to be reinstated back into your loan agreement.

 

3 Refinance

 

Once reinstated, if you have otherwise decent credit, and have equity in your home, refinancing may help you get back to a more affordable monthly payment. However, if you have already missed more than a few payments on your current mortgage, your credit might already have a ding.

 

The fourth option is many people’s option of last resort:

 

4 Bankruptcy

 

In some cases, bankruptcy may temporarily stop foreclosure and allow you to reorganize your debt. That is an important caveat: the foreclosure relief gained through bankruptcy is temporary. If you are still unable to make regular payments after the bankruptcy, the foreclosure will go forward.

 

The fifth option is considered by many as the best choice to avoid foreclosure, because of one big benefit--waiver of deficiency:

 

5 Short Sale

 

Your lender may allow you to sell the property at the current market rate, so no foreclosure happens. You get to sell your property instead. When you work with them, the bank accepts less than the amount you still owe, and usually agrees to release you from your obligation for the balance of the loan.

 

You get to walk away clean!

 

These are just some of the options available. Get more information to arm yourself against foreclosure at AvoidGeorgiaForeclosure.com. Get short sale answers at BestAtlantaShortSales.com.

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Groups:
Atlanta Real Estate Q&A
North Georgia Real Estate
Short Sales Specialists
Local Expert
Advice for Sellers
Tags:
atlanta forclosures
best atlanta short sales specialist
top 5 common ways to avoid foreclosure

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
511,496

Elva Branson-Lee

CDPE - Atlanta Real Estate & Short Sale Agent
Ask me about Georgia short sales
*
*
*
*
Spam prevention

Additional Information