There are many homeowners in Massachusetts having a tough time making ends meet. Unfortunately some haven fallen so far behind they are in jeopardy of losing their home due to Bank Foreclosure. Angel’s Realty in Uxbridge, MA we have been working hard to set up a system to help these foreclosure victims. We have found there are alternatives to foreclosure, I have outlined a few of them below:
1. Do nothing: Your bank forecloses and the bank evicts borrowers. Bank files suit to collect deficiency (amount between what is owed and what the property sells for at auction.)
2. Refinance: This may or may not be an option and depends on how much the borrower owes on the home & how much the home is worth (equity). There are loan modifications available, every situation is unique and that is where we can help.
3. Deed in lieu of foreclosure: This is when an owner deed’s the property to the bank. The Seller is forgiven any amount owed that is over the value of the property. Seller must immediately vacate the property. This option has a negative effect on credit, but may not be as negative as the bankruptcy option below.
4. Bankruptcy: This option may be useful if there is equity in the home to slow down the foreclosure action. If there is really no equity then a subsequent sale will still be a short sale and bankruptcy may not be a viable way to stop the foreclosure. Bankruptcy also can have a devastating effect on a borrower’s credit.
5. Short Sale: Short sale allows property to be sold, all taxes and all utilities and other debts associated with the property to be paid. The effect of a short sale on Seller’s credit is not as negative on Seller’s credit as deed in lieu of foreclosure or the bankruptcy options, as described above. The short sale may have a tax consequence.
If you are behind on your payments & think you may be headed in this direction, we want to help. Angel’s Realty has successfully worked with sellers to help them make a good decision about what to do next. We have found in many cases a short sale is the best option. We have also become experts in the area of Short Sales and have a system in place that has proven to work.
We are in the process of building two websites specifically designed for people facing this situation www.preventforeclosuresite.com and www.helping2savehomes.com . Please visit the websites to learn more about the process & request a free consultation.
This article was provided by Lisa Mahoney of Angel’s Realty located in Uxbridge, MA. I can be reached anytime at 508-802-3436 or email lisa_mahoney@charter.net.
