What’s the no. 1 Reason for Foreclosure?
The wave of foreclosures has been damaging to the economy on a number of levels. Property values drop in neighborhoods occupied by multiple foreclosed houses. Short sales can help resuscitate a neighborhood by making it easier for buyers to get into homes at affordable prices. 5: It presents opportunities for agents. Like sellers who wish to get out of unaffordable homes, prospective homebuyers benefit by not having to endure the red tape and bank auctions associated with the purchase of a foreclosed home. The short sale process may be less complicated than a foreclosure, but it still requires the homeowner to go through a multistep process that’s more complicated than a traditional home sale.
A short sale is a transaction in which the bank lets the delinquent homeowner sell the home for less than what’s owed. The borrower finds an agent and puts the house on the market, often at a substantial discount. The hope is that, if the home sells, the lender will recoup the majority of what the homeowner owes. A short sale doesn’t absolve the borrower from the debt he or she incurred with the original mortgage, but it can be better than a full-on foreclosure.
A number of well-publicized scandals related to foreclosures have taken place over the last decade. The homeowners often come out of these fraudulent deals owing even more money and with no relief from foreclosure. Many involve scam artists who offer money-back guarantees, catchy slogans and promises to save homes from foreclosure in order to get access to struggling homeowners’ funds. The short sale process works very much like a regular sale, and the homeowner will get to know the professionals with whom they’re working. 1: It can offer the seller peace of mind. Opting for the short sale route will greatly diminish opportunities for scam artists to dig their claws into vulnerable homeowners.
8: It can save you money. Mortgage lenders won’t always file for a deficiency judgment in a foreclosure case. The average legal cost to a homeowner going through a foreclosure is around $7,500, according to the U.S. It depends on the situation and the likelihood that they can win back the amount owed on the property. Congress Joint Economic Committee. Add in the additional costs that can accumulate throughout the sometimes lengthy foreclosure process, which could be just the tip of a burdensome financial iceberg.
No homeowner, on the signing day for a new home, imagines he or she will face a foreclosure. It’s a frightening situation. But the economic downturn and real estate market crash combined to plunge an unprecedented number of homeowners into the distressing process of losing their homes. The foreclosure process can be long, stressful and severely damaging to the homeowner’s savings, L’case Bangkok assets and credit. However, there is another option for some homeowners.
