The distressed property market on Long Island and in the five boroughs has experienced major changes since the housing crisis. Banks are more aggressive and they are foreclosing on homeowners at a faster pace. Many homeowners who find themselves behind on their mortgage payments discover that they are facing the threat of foreclosure. The good news is that there are some realistic options that can prevent foreclosure, but it is important to get the right advice and take action as quickly as possible. You may not have time to recover if you make a mistake.
Foreclosure in New York
In New York State, foreclosure is a lawsuit filed by the lender, typically a bank, when you default on your mortgage payments. The bank is the plaintiff and you are the defendant. The foreclosure process moves quickly, but you do have time to put a strategy in place. Court Help, the official website of the New York State Unified Court System, recommends that you seek assistance as soon as you miss a mortgage payment or receive an Acceleration or Demand letter from the bank.
The Effects of Foreclosure
A foreclosure on your record will have a drastic negative effect on your credit rating for years to come. After a foreclosure you may not be able to get a credit card, secure a mortgage for a more affordable home or obtain a car loan. A foreclosure can also undermine your efforts to land a good job. To avoid foreclosure, it is important to get advice from an experienced company that specializes in foreclosures to help you find out about your options.
Partner with a Foreclosure Specialist
Foreclosure specialists are likely to tell you to avoid foreclosure at all costs. A foreclosure on your credit rating can prevent you from moving on with your life. There are alternatives, but you have to think the situation through and make a decision quickly. Once the lender decides to foreclose on your home, things move fast. A company specializing in New York foreclosures can advise you about your options, make recommendations based on your specific situation and guide you through the process once you choose a strategy.
Alternatives to Foreclosure
Of all the strategies available to derail foreclosure proceedings, a short sale may be your best option. If home prices dip and you carry a large amount of debt on the property, you might be a candidate for a short sale where the bank accepts less than you owe. When you sell your home but the proceeds are not enough to cover the amount you still owe on your mortgage, the bank may agree to take the deal. Keep in mind that you need to get the approval of the bank before you accept the offer in a short sale. Other options to avoid foreclosure include loan modification and a deed in lieu where you hand over the keys to the bank and walk away from your home.
Convincing the Bank to Take a Short Sale
Convincing the bank to accept less than you owe on your mortgage is not easy. A short sale specialist can help you persuade the bank to accept less than you owe on the mortgage if you can’t recoup enough when you sell. An experienced short sale specialist can help you put together a “short sale package” that provides information and documentation to make your case. Your short sale agent can help you formulate a convincing hardship letter explaining why you are having financial difficulties. You will also need documentation including evidence of monthly bills and expenses. Banks can be difficult to deal with, and a short sale specialist knows how to get your short sale package in front of the right person in the loan mitigation department and negotiate with the bank on your behalf for the best possible outcome.
Homeowner Relocation Services
Many homeowners facing foreclosure are in a stressful situation and find it difficult to shift their focus to the future. After a successful short sale, you may find that you have not paid enough attention to the next step. A full-service real estate company can provide relocation services after a short sale or foreclosure to help you find a new place to live, even if you have less than stellar credit. Through their contacts, you can learn about affordable rentals, possible rent-to-buy options, or outright purchase options, even if you have limited credit. By partnering with the right real estate company you will have guidance in handling your short sale and the relocation services you need to make a fresh start.
Short Sales for Real Estate Investors
In the current real estate environment, many new investors jump into the market without a thorough understanding of the basics. Unfortunately, for some the result is a looming foreclosure. Inexperienced investors may discover that they do not have the financial resources to close on the property, and they may lack the ability to formulate a deal with the bank for the right financing. Investors may be overleveraged by pulling money out and investing in new properties without accumulating enough equity as a cushion if prices fall. Unfortunately, some investors find out that dealing with the wrong agent will not prevent a devastating foreclosure. A full-service real estate company can provide due diligence like title searches that investors need, along with negotiation services if the property is sold in a short sale.
Realty Warehouse Real Estate Services
Realty Warehouse is a leading full-service real estate investment company specializing in distressed properties. We help homeowners facing foreclosure on Long Island and in the five boroughs of New York City. At Realty Warehouse, we enjoy an outstanding record of customer satisfaction with no negative reviews and an A+ accreditation rating from the prestigious Better Business Bureau. We have worked with hundreds of homeowners to help them avoid foreclosure, and we offer complimentary short sale negotiation services at no charge to you. The Relocation Department at Realty Warehouse is there for you to help after the sale of your home with individualized relocation services.
Call, click or chat with Realty Warehouse for a free 10 minute consultation that can change your life.
This blog is for informational purposes only, subject to change.