Hundreds of thousands of people are facing foreclosure or are in various stages of foreclosure today.
Many are stuck in a mortgage they can no longer afford to pay due to the resetting of the ARM or Adjustable Rate Mortgage.
Refinancing is difficult or impossible because of financial hardship and declining real estate values. You cannot be approved to refinance if you owe more than the home is worth in today's market.
Being in this tough situation is overwhelming, to say the least. Wouldn't it be nice to just be in your own home, having dinner with your family or just relaxing, without the phone calls from your lender?
You do have options and help is available no matter where you are in the foreclosure process. If you feel that you have exhausted all other options; if you feel that you should cut your losses and walk away from this debt and start over, you should consider a short sale.
A foreclosure will greatly affect one's credit standing. It is believed by many that a short sale will lead to a shorter credit recovery period. Does this mean that a foreclosure damages one's credit more than a short sale? The truth is that a short sale offers very little advantage over a foreclosure when it comes to preserving your credit standing.
Let's be clear about it. Although there may not be an advantage in using a short sale instead of entering foreclosure when it comes to preserving credit standing or recovering FICO points sooner, using a short sale does have its advantages.
This has close relation to real estate investments, as the types of distressed properties that make good investments correlate with the knowledge anyone needs to know.
Short sales occur when a home owner is in foreclosure but before the property goes to public auction.
A lender must agree to accept less than the amount that is owed on the property.
Investors typically buy the home for even less because investors are not paying off the existing loan nor making up the back payments.
A home in foreclosure is when a notice of default has been filed in the public records.
The owner has stopped making mortgage payments and the lender has given notice that unless the payments are brought up to date, it will sell the property to the highest bidder.
Lenders can foreclose for other reasons, but the most common reason lenders file a notice of default is when a borrower is at least two payments in arrears. If the home owner does not bring the loan current, the lender will take the property away from the owner.
Not all homes that fall into foreclosure go to public sale because owners have the right to make up back payments up to a point, the time which varies from state to state. Real estate investors and home buyers see profit in buying foreclosures because they can often buy the property for the amount owed, picking up the home owner's equity for free.
REO is similar to buying a short sale except the property is already owned by the lender. The property was acquired by the lender through a foreclosure action. Often lenders will sell repossessed homes for less than the past loan balance. Bank-owned properties are called REOs, meaning real estate owned by the lender.
It's just the investor, the investor's agent, the bank and the bank's agent who are negotiating the transaction. Some REOs can be purchased directly from the lender.
Need help? Your in luck because.....
ThePremiumProperties.com is quickly becoming the leading choice of the most discerning buyers and sellers of luxury property in the most prestigious, impressive, and sought after locations throughout the Greater Orlando area.
ThePremiumProperties.com focuses primarily on luxury estates, but we don't hesitate to work with new home buyers as well. We understand that unparalleled luxury homes and estates demand the next level of service that goes beyond the average service that agents provide.
We specialize in a variety of distinctive properties some of which are in the exclusive neighborhoods of neighborhoods of Dr. Phillips, Windermere, Hunter's Creek, Downtown Orlando, and Lake Nona.
Discover Dr. Phillips homes for sale and Bank owned homes in Orlando.
Tips about buy vacation home topic published here.