In case you have been living in a cave (which would mean this article is irrelevant to you because you don’t need foreclosure help), we thought you should know that the country is in a bit of financial turmoil. Millions of home owners are facing mortgage problems and thinking about how to get foreclosure help. Never before in history has the foreclosure rate in Phoenix, Arizona been so high. The current administration and congress have been rolling out programs everywhere you turn to help the economy recover. Indeed one of their focuses is on the housing market. They understand that many are searching for foreclosure help.
With banks receiving billions of dollars in bailout money, you would think that they could lend a hand to home owners looking for foreclosure help. However, to date, that has not happened.
If you are one of those unlucky home owners looking for foreclosure help, there are some options available to you. However, given the fact that you may be facing foreclosure, most of the options are not truly a way to find foreclosure help, but rather a way to deal with your impending foreclosure. Here are a few options to consider, as well as our personal opinion on the validity of using each option to get the foreclosure help that you need.
Bankruptcy – filing for bankruptcy in Phoenix, AZ is not really a positive way to get foreclosure help. Depending on the state that you live in, bankruptcy may not even be a possibility in avoiding foreclosure. However, it is an option, albeit the worst option. With bankruptcy (depending on the laws that differ in each state) you may be able to avoid foreclosure, but your credit will be ruined for a minimum of seven years.
Loan modification – With loan modification the chance at receiving foreclosure help is better than bankruptcy. However, the modification of your current mortgage is entirely up to the lender that you are working with. The lender can modify your loan to better fit your needs at their discretion. Since they are also struggling, they may not be inclined to change the terms of your loan as foreclosure could get them more money in the short term.
Short sale – The Short sale of your home is, WITHOUT a DOUBT, the best option available to someone looking for foreclosure help. To be clear, however, considering this foreclosure help is not entirely accurate as you need to start this process BEFORE the bank decides to foreclose on your property. With a short sale, you put your home on the market and find a buyer for it. Then, we you have an offer in hand, you can negotiate with the bank to take the offer even if the offer doesn’t cover the entire value of the loan. The bank will often times accept this lower offer because they understand that they will not get nearly as much if they sell the home at foreclosure. They will also forgive the remainder of the loan to remedy the process.
There are not a great deal of options available to you if you are looking for foreclosure help. However, foreclosure help is available. We feel that your best option, and your only option if you want to come out of this hardship with as little damage as possible, is the short sale.
Do you have questions? Read the Short sale FAQs.
Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com
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