WHAT IS
FORECLOSURE?
ASK SIS ANYTHING
REGARDING FORECLOSURE!
SIOUX CITY REAL ESTATE INVESTOR
Foreclosure is the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments. Typically, following foreclosure, a large corporation swoops in to buy a home in order to turn a profit. Blue Door Properties is not one of those predatory corporations. I will give you my time and professionalism, doing whatever it takes to help you find the resources you need to navigate through the foreclosure process. Whether I make an offer to buy your home or put you in touch with another professional who can help.
FORECLOSURE ASSISTANCE IN SIOUX CITY
If you are personally facing foreclosure, it is important to read over your loan papers. Every state has different laws and timeframes on foreclosure. Typically, there are six phases of foreclosure; payment default, notice of default, notice of trustee’s sale, trustee’s sale, real estate owned or (REO), and then eviction. You will receive several notices about foreclosure in the mail.
Do not ignore the letters from the lender.
Those notices will provide guidance on where to go get help with foreclosure prevention. It is also a good idea to contact the lender to let them know that you are aware you are behind on your mortgage payments. That way they can present you with your options to cure or help you with a plan to catch up.
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HOW BADLY DOES FORECLOSURE
EFFECT YOUR CREDIT?
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As far as possibilities for your credit score, foreclosure will most certainly have an adverse effect on your overall credit. Keeping your home should be your number one priority. With a foreclosure on your credit report, future credit endeavors will be difficult because lenders will look at how you have handled your past credit – and a foreclosure is an indication that you are not “credit worthy” in the eyes of a lender.
OPTIONS SELLING YOUR HOME
Selling your home should not mean you lose money. I want you to walk away from your home with money in your pocket moving forward. If your loan-to-value is 100% or more of the appraised value, it is possible that you will unfortunately face a loss on the property. A short sale for the homeowner and lender is another valued option. A short sale occurs when the homeowner and lender agree to sell the property for less than the mortgage amount.
The lender must agree to the short sale. The lender will recoup a portion of the mortgage and the seller will not have a foreclosure on their credit report. Short sale will be noted on the credit report but will not be as damaging as a foreclosure. The seller will get no cash from the short sale.
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CAN YOU AVOID FORECLOSURE?
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Ultimately lenders do not really want your house. Contact Blue Door Properties for guidance on avoiding foreclosure. Not communicating with your lender is the worst option. Once the process of foreclosure is set in motion it is difficult to reverse. Attorneys are hired and fees begin to incur.
To stop a foreclosure the delinquency on the loan must be cured, the cost of all fees covered, and the lender must agree. The process of foreclosure takes time to initiate so at that point, you are likely already 3 to 6 months behind on your mortgage payments - which is hard to repay if you are already in a difficult spot financially.
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