Strategic Defaults in San Joaquin County
Have you heard of a "Strategic Default"? Unfortunately this term has become more common in the Real Estate industry and media. In reality, a default or foreclosure is never a simple or painless process and seldom strategic. In fact, defaulting on a loan can be devastating and destroy the financial future of a homeowner and their family.
What is a Strategic Default?
A Strategic Default occurs when a property owner chooses to walk away from a property and therefore the loan, when they may be perfectly capable of making the payments. This often occurs when the homeowner is "upside down" or owes more more on the property than it's worth and feels the home is no longer a good investment.
This strategy may lead to many negative scenarios including:
1. Foreclosure
2. Deficiency Judgement
3. Destroyed Credit
4. Tax Liability
5. Negative Employment Issues
6. Public Record of Foreclosure
Strategic Default Options
Distressed homeowners have many options.
One option is doing a Short Sale. A Short Sale is when the homeowner and Realtor work with the lender to accept a selling price that is less than what is owed on the loan.
A second option is a Loan Modification. A Loan Modification is where the lender agrees to modify the terms of the loan.
A third option is Forebearance. A Lender may be able to arrange a repayment plan.
The fourth option is Deed in Lieu or giving the property back to the bank instead of the bank foreclosing.
What Option to Choose?
1. Speak to a professional Realtor that specializes in helping distressed homeowners, like a CDPE designated Realtor.
2. Contact your bank and discuss your particular situation.
3. Don't panic and make a poor decision.
Compare Strategic Foreclosure Versus a Short Sale
Deed In Lieu of Foreclosure in San Joaquin County
To deed or not to deed, that is the question.
Many homeowners are in an unbearable situations and need to make decisions and do not know what to do or where to turn. Lost jobs, late payments and desperation.
Click for Options and Solutions for Foreclosure
One topic that continually pops up is Deed in Lieu of Foreclosure or the "Friendly Foreclosure" Versus a Short Sale. A Deed in Lieu can be good for the bank, but not necessarily good for the homeowner. During this process, the home is voluntarily given to the bank because the homeowner can no longer make payments. The bank takes the home back without having to go through the foreclosure process. The bad news for a homeowner is that a deed in lieu can damage one's credit as bad as a full foreclosure. Also, for a Deed in Lieu, most banks require that a property be on the market at fair market value for 90 days before they will consider granting this option. Also, keep in mind that a Deed in Lieu will be a typical question asked on a credit and Job application whereas a Short Sale will not be of concern.
In a Short Sale, the homeowner works with the lender to accept a selling price that is less than what is owed on the loan.
Benefits of a Short Sale are as follows:
1. Salvaging credit.
2. The feeling of achievement for selling the property without going through the horrors of Foreclosure.
3. Putting the the seller in a position to negotiate the removal of a deficiency judgment if applicable.
4. With a Short Sale the seller may be able to purchase a home again in as little as two years.
The Short Sale Option in Lodi, Ca and Stockton, CA
Chances are in today's market, we all know someone who is having trouble making the house payment each month. Obviously this is not a good situation and homeowners need guidance and assistance. According to statistics, up to 70% of distressed homeowners choose to move through this process alone, not realizing that crucial decisions could make the outcome of their situation much better.
Steps For The Distressed Homeowner
1. Realize that you have a problem and become proactive in finding a solution.
2. Contact a professional that specializes in Preventing Foreclosure.
Short Sale Option http://stopforeclosurelodistockton.com/
3. Organize your financial information and documents. Regardless of what option is chosen,
this crucial step can speed up the process.
4. Contact the lender as soon as possible and discuss your situation. Lenders want to avoid
Foreclosure at all costs. Learn about Loan Modification. http://TrivalleyBroker.net/
5. Understand the various Foreclosure avoidance options. (See Previous Blog)
Short Sale Option
A Short Sale is a dignified alternative to Foreclosure, where the lender allows the homeowner to sell their property for less then what is owed. A Short Sale may help a homeowner prevent Foreclosure and or Bankruptcy and salvage their credit rating.
My goal as a Real Estate Broker is to keep the distressed homeowner in their home, but when a Loan Modification is not successful and other choices have been exhausted, a Short Sale becomes a viable option. A Short Sale can also put the seller in a position to purchase a home again in as little as two years.
Stop Foreclosure http://lodibroker.com/
Prevent Foreclosure in Lodi and Stockton, CA. Many homeowners in the Lodi Stockton Area are finding themselves in situations where they are unable to continue making their house payment. The homeowners feels trapped, helpless and have no idea how to Stop Foreclosure. Fortunately there are options.
How to Prevent Foreclosure
1. Payoff the loan completely or Refinance
2. Reinstatement- Paying the default amount plus all additional fees
3. Loan modification-Prevent Foreclosure http://trivalleybroker.net/
4. Forebearance- Lender may be able to arrange a repayment plan
5. Deed in Lieu- Giving the property back to the bank instead of the bank foreclosing
6. Bankruptcy- This option can liquidate debt and possibly allow more time
7. Traditional Sale- If the property has equity, the homeowner may sell the property without lender approval
8. Short Sale. If a homeowner owes more on their property than it’s currently worth, they can hire a qualified Realtor to list, market and negotiate a Short Sale with their lender. A short sale can Prevent Foreclosure.
Short Sale Help! http://stopforeclosurelodistockton.com/
My goal as a Real Estate Broker is to keep the distressed homeowner in their home. When a Loan Modification or the other options mentioned are not possible, a Short Sale becomes a viable option. Not only can a successful Short Sale Prevent Foreclosure, it can also put the seller in a position to purchase a home again in as little as two years.
Property Search http://lodibroker.com/
Instead of focusing on the negative, a Short Sale can Stop Foreclosure and can be viewed as the beginning of a fresh new start.
As a Realtor/Broker Associate with Ameristrong Realty. My goal is to provide the best professional service. I have 13 years experience & specialize in residential sales, short sales & foreclosures.
For the past 13 years, Mitch has been the Lodi, Stockton, Galt and surrounding area Real Estate expert. Mitch is a Broker associate, Certified Residential Specialist and also a Certified Distressed Property Expert. Mitch specializes in residential sales, especially short sales and foreclosures.
Mitch specializes in Residential Sales, Short Sales and Foreclosures.
Mitch Shannon is the most professional and pro-active Realtor that we have ever worked with.
We relocated from the Chicago area. Mitch Kept in constant contact with us during our long selling time while we were listing our Chicago residence. He helped us to find the perfect community for us to live in California
Mitch was pro-active in all phases of the purchase process. We feel that if Mitch was not pro-active we would have not been able to close.
As we purchased homes before, we can state with confidence that Mitch Shannon is the "Best" agent we have ever worked with.
Justin and Marie
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