How bad is a foreclosure? Help please.?
Question:
Answer:
I would be very leary of the previous user's answer regarding an 'option only arm'. Option ARMs are programs designed for a very savvy real estate investor. Option ARMs are also one of several reasons why the real estate market is in the turmoil its in today. If not properly managed, an option arm can put you in a worse situation financially than you're in currently. I would strongly suggest you do your research before contemplating an option ARM solution.
Foreclosures are never a good thing. They rank up there with bankruptcies in terms of the impact on your credit rating and the ability to purchase/refinance a home in the future, and in some instances, are even worse than bankruptcy. If at all possible, you should avoid foreclosure. You should discuss your current situation with someone you can trust who works in the field of mortgage financing.
Here's an idea. You could always refinance the old house into an option only ARM, and set it for 3 years, to ensure that you had plenty of time to sell it. I may be able to help with this, just shoot me an email to msmith@premierloangroup.com, and we'll see what we can do!
M arty
an optiononly ARM is a good way to end up bankrupt at this point in the real estate market, given your current financial situation.
Well, you should close on the current house as soon as possible and make sure that you are current in the old mortgage. Some lenders will check your credit one last time before closing, and they won't want to see you starting to miss mortgage payments.
In terms of selling the old property, have you considered a short sale? That is where the lender will accept less than what you currently owe them. The buyer could offer $200,000 or so (if that's what the property is worth), and the bank would accept that amount as their payoff, rather than the $240,000 that you owe them currently. This is what a lot of real estate investors will do with properties, and then either resell them or rent them for the monthly income the property produces.
Foreclosure is something you definitely want to avoid, though, since there are so many different ways that you can avoid foreclosure. You could refinance the old house to a lower rate, if possible, or sell to a private investor, as described above. As a last resort, you can just give the property back to the lender with a deed in lieu of foreclosure. But do what you can to preserve your credit history and avoid letting the home just go through foreclosure.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
although getting a new arm is an option, HANDS DOWN, THE BEST OPTION YOU HAVE IS A 'SHORT SALE'. I hope this helps.
I am a real estate broker in the denver metro area. If you are behind in payments and see no real way to catch up, you need to find a good real estate agent before anything. with the market the way it is right now, housing is very competitive, mostly because of all of the foreclosures on the market as a result of sub prime lending. Typically you are allowed to go at least 2 months, often up to 6 months of non-payment before your lender will hand over your account to an attorney. From that point the attorney will file the case, and eventually turn everything over to a public trustee who will sell your house at a public auction. This can take many months however. In the meantime, if you get in contact with a GOOD agent (note, most are not 'good', and are okay at best. find an agent, and ask them if they are in the 100% club, or the platinum club. You need someone at the top of their game to get this done. Not the friend of the family who gets 2 sales per year). Ask them about a short sale. This is your best, and possibly your only alternative at this point. A short sale, pending your lender approval, will allow you to sell the house free and clear of all losses and fees- BELOW what you owe on your mortgage. The lender does this because its better than the occupant not paying for 6+ months, trashing the house, the house going through the legal ropes, eventually going to a public sale and still not making what you owe on it. They would rather cut their losses and be done with it, 99% of the time. In the market here in denver (east side), the average time on the market is nearly 6 months. Doing a short sale often allows a sale in a week or two. With yoru husband not working, it will not be hard to qualify for a short sale, and you will not face the reprocussions of a foreclosure. Many agents simply don't know about short sales, so if you need any help finding an agent from any company, email me.
If you (or any readers) are looking for any good broker or agent in your area, email me. I mean it. I can help. In fact, I will put money in your pocket, guaranteed. eezumstein@aol.com . I can pay you up to 1% of what you're house is worth in cash just for emailing me! No risk. I will get you an agent in the top 1% of agents in your area, no matter the company. If you are in the denver metro area, email me and I will help you. If I sell your house (which i will) then I will pay you up to 2% of what the house is worth. My last short sale sold in 8 days! Now my client has no mortgage to worry about, and he doesn't have to face bankruptsy. In addition, he doesnt have the horrible mark on his credit record, and he can buy a house in a short period of time. Email me for details. I am here to help however, so while I can help by providing my services in any way, I am happy simply to answer your question. Do no go into foreclosure, and do not get an ARM that you wont be able to afford now or in 2 years.
I hope this helps. There is no, nada, zero reason to foreclose. Do not do that to your credit, or your life. Short sales are the way to go 100% of the time. Educate yourself about it, and talk to a qualified broker/agent. Email me for any questions and I will be happy to help.
More Related Questions & Answers...