What are the alternatives to foreclosure?
Deed in lieu of foreclosure and short-sale are alternatives to foreclosure. Though similar, there are some key differences that depend on the details of the situation.
With a Deed in lieu of foreclosure, you are sending the keys to the bank and abandoning the house in exchange for the bank taking over the loan. What happens next is the bank will fix up the house and sell it. You will then owe the difference between the sale price and the balance outstanding.
Though it sounds simple, there's a catch.
The Bank will charge you for all kinds of things that are not under your control such as costs incurred in fixing the house up, maintaining it as well as any closing costs to sell it. In effect, you allow the bank to take control of the process and you are still burdened with expenses.
With a short-sale, you are actively negotiating your loan forgiveness with the bank. This means that you can get the bank to reduce the amount you owe them, perhaps even to the point of not owing anything! You also minimize extra expenses that the bank would otherwise charge you.
If you are underwater with your mortgage, we don't have a moment to lose. Give me a call! The more time we have between now and foreclosure, the more time we have to make a Short-Sale work.
I am Short Sales and Foreclosure Resource (SFR®) certified! This certification allows me to hone the skills that will allow me to help buyers and sellers of distressed properties!
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Tawana Bourne | 860.834.1220
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*Disclaimer. Q&A’s are for marketing purposes only and are not intended to offer real estate advice to non-represented parties. Please consult with a real estate professional under their contractual representation for answers to your real estate questions.