When homeowners struggle to keep up with their mortgage payments and the bank threatens foreclosure, they are on an emotional rollercoaster. To make matters worse, banks have become more aggressive in moving from the first preforeclosure notice to auctioning off the home and evicting the residents. Many owners find it difficult to get up-to-date information about how much they owe and the options available to avoid foreclosure.
Some Strategies to Avoid Foreclosure
According to Jose Fernandez of Realty Warehouse, there are some effective strategies people can use. If their income is sufficient, homeowners can try negotiating with the bank in a loan modification that reestablishes the terms of the mortgage. Another option is to sell the home in a short sale if market conditions show that a regular sale will not yield a “high enough” offer to cover what is owed on the house.
What Happens During Foreclosure
A foreclosure has a devastating effect on the homeowner’s credit for years to come. In the State of New York, foreclosure is a legal proceeding that can begin when borrowers are 90 days late on their mortgage payments. The lender may then file a lawsuit where the owner is the defendant and the lender is the plaintiff. Going through a foreclosure can result in long-term financial damages, such as wage garnishments and bank account levies. A foreclosure may also prevent people from buying a car and landing a job, and they will find that it is impossible to get a mortgage on a more affordable home for many years to come.
Decision Making During Foreclosure
Jose Fernandez believes that foreclosure should be avoided whenever possible. “I look at each situation as an individual case,” he said. “When people are in financial distress, their first reaction is to fight to keep their home. But this is no time for sentimentality, even if the house has been in the family for years. You have to find out how much you currently owe and decide if it is really worth it to keep the house.” Jose helps people stay in control if there are issues like remaining in the home so a child in high school can finish out the school year.
Reaching Out to Avoid Foreclosure
He says that the single most important thing a homeowner can do is to seek the support of a reputable company that will give them verifiable facts and good advice. “Researching the company is the key,” he stated. “People have to find out exactly how much their house is worth and how much they owe, considering the back payments that are adding up and the interest that is compounding.”
Jose Fernandez sees it as his job to create a “soft landing” and help people avoid foreclosure while getting them the best outcome from their bank. “My number one goal is to inform and advise my clients and customize the options available to obtain the best possible result. If they owe too much on their current home, it just doesn’t make sense to try and keep it,” he said. “The important thing is that my clients know they are not alone. I will stand by them and help them make big decisions, so they can move on. Often, the best solution both long and short term is to sell in a short sale, take advantage of our relocation services and get a new start in life.”
This blog is for informational purposes only, subject to change.