30 July 2010
Foreclosure Alternatives
Posted by Lori Bender under: Naples Fl Homes for sale .
The prospect of foreclosure can be financially and emotionally devastating. Often homeowners proceed without guidance of any kind. Seven out of ten homeowners in distress simply allow their property to be foreclosed on without ever making an inquiry into what their options may be. The rest will reach out for help and call their agent and the agent tells them, ‘I can’t help you—you have no equity in your home.” Then they call their lender and the lender says, “We can’t help you—you have no equity in your home.” And that is where the investigation into what their options are dies.
Truth is that there are currently over 14 different programs available to homeowners to help alleviate their current real estate crisis. Even more are being added over the next few months, such as a FHA home modification and short sale plan being rolled out sometime in August 2010. It is difficult for the average homeowner to find out what their options are and even more difficult to understand which of these programs they may qualify for.
For the majority of homeowners in distress, a short sale is the best answer for them. To assist the housing crisis across America, our government is offering tremendous incentives to lenders to cooperate with short sale transactions. Simply put, in most cases a short sale is now cheaper for a lender to complete than a foreclosure. Combine that with the incentives they receive from the government at this time, and you can begin to see why short sales are currently ‘all the rage’. Lender cooperation with short sales has increased dramatically and they have ramped up their default departments to get these transactions done quicker.
