There have been a lot of articles lately outlining the various methods used to get out from under a home that is worth less that what is owed. According to a recent poll in 2008 there were over 1 million homes foreclosed upon across the country and of that amount 60% of the homeowners never contacted a real estate professional to find out what their options were. There are four basic solutions for homeowners outlined below. Some are obvious solutions while others are misunderstood.
Fair Market Sale: When a home is sold on the open market and the homeowner brings cash to the table to satisfy the debt on the loan.
Short Sale: When the lender agrees to take less that what is owed and forgive the difference. This can result in increased taxes depending on the situation.
Loan Modification: When the lender agrees to re-write the loan terms so the homeowner can keep his home. This includes everything from interest rate or principle reductions to extending the length of the term.
Foreclosure: When the homeowner loses the house due to non-payment either by default or by deliberately signing the house back to the lender (deed in lieu)
I hope this will serve to help those who might be too afraid to ask. Fear is the number one reason given as to why people never contacted anyone for more information. Here's a link to a simple survey to help determine if you need to contact a professional for some assistance
Click Here to take survey
Beth Mergens
Broker Associate at Remax Gold
http://www.FolsomLakeHomes.com
