How To Avoid Foreclosure and Stop A Foreclosure Sale

It is no secret we are in a financial home crisis bordering on financial crisis. As homeowners we need solutions to avoid foreclosures. In order to prevent foreclosure and save your home it is critical to understand the options that are available. There are many companies willing to offer foreclosure assistance, but in order to select the correct company, I would like to educate you about an option call Foreclosure Short Sales. This option is becoming a great alternative to stop a foreclosure. The home lenders are recognizing it costs them less to sell a home on a Short Sale versus repossessing your home and holding the real estate on their books. Home lenders are not in the Real Estate business but are there to lend money. This alternative solution is becoming very well accepted among the home lenders and you will see a significant increase with Short Sales within the next 9 months.

Currently, there is alot of confusion about whether or not a lender will even do a Short Sale. All lenders perform Short Sales but a Short Sale cannot begin until the seller has a legal binding purchase agreement. Keep in mind, you do not need pre approval in order to begin the short sale process. There are alot of misconceptions that you need to obtain a written approval in order to begin mitigation. If your provide the proper paperwork, supporting documents and purchase agreement then negotiations can begin with the lender.

Below I have created a series of bullet items that can assist you through the Short Sale process.

• Select a Short Sale company that is attorney based. An attorney brings credibility to the negotiation process and can help the process when obstacles surface.
• Hire a knowledgeable Real Estate agent who can provide you with a comparative market analysis (CMA) or broker price opinion (BPO)
• Be sure a purchased contract agreement (PA) has been negotiated with a buyer.
• Create a Hardship Letter with details about your financial situation and why you should be considered for a Short Sale
• Provide W2's, bank statements and two years of tax returns to your lender

Be prepared that a Short Sale process can be very lengthy. The process can take anywhere from 60 days to several months. If you have only one bank mortgage it could take only 60 days, whereas, if you have a first and second mortgage it could take up to 4 months and even longer if the first and second mortgages are with different mortgage lenders.