Fairfax VA -It can be stressful to be a Fairfax Va home owner who is facing foreclosure. You don’t know what is going to happen, how much longer you have in your house before the bank kicks you out on the street or how much money you’re going to owe your lender after all is said and done.
But as a Fairfax VA home owner, you have options. I’m here to tell you about them.
Option #1: Do nothing and the lender forecloses on the house.In most states, a foreclosure takes a long time – sometimes up to a year!
Option #2: Deed-In-Lieu of Foreclosure. This is where you surrender your home to the lender. This allows the lender to be able to sell the home faster, thus protecting their investment. This usually does not benefit you in any way. So do not consider this option unless the lender gives you something in return
Option #3: Loan Modification to reduce your mortgage payment. If you want to keep your home, then a loan modification is a good solution. Typically in these situations, the lender will reduce your interest rate or extend the term of the loan. In order to qualify, you usually need to send your lender all of your pay stubs, bank statements, and other financial documentation.
Option #4: Reinstatement. In this option, you pay the lender for all back payments, late fees, and other related costs.Once you’ve done that, you can start making normal monthly payments again. The drawback is that this option requires you come up with all the back payments and other fees.
Option #5: Get a New Loan and pay off your old loan. If you still have equity in your home, this might be a good option for you. However, if you owe more than your home is worth, then it will be hard to find a lender willing to pay everyone off. And if your credit history shows late payments, a new loan might be hard to come by.
Option #6: Sell the property. Obviously this is a good choice if you don’t want to live in your current house anymore. But if you owe more on the mortgage than the house is worth, you’ll need to complete a short sale.
Option #7: Rent the property. This will help you earn some extra money. However, many mortgages are written with legal clauses that force you to forward any rent proceeds to the lender. Also, a lot of local and state governments have recent laws forbidding you from renting a property unless the mortgage is current.
Option #8: Bankruptcy. While this has always been an attractive option for those seeking a fresh start, the law now forces the bankruptcy judges to steer you to a Chapter 13 bankruptcy versus the better option of a Chapter 7. The difference is that a Chapter 7 gets rid of all your debts while a Chapter 13 essentially sets you up on a court monitored repayment plan.
Under a Chapter 13, many people find themselves stuck under the same burden of debt that caused the problem in the first place. Only this time, there are more fees associated with the bankruptcy. Some experts have said that your just better of not paying your creditors than doing a Chapter 13 bankruptcy. This costs you less money out of pocket and your credit gets cleaned up faster.
Option #9: Short Sale. You complete a short sale when you owe more than your Fairfax VA home is worth. You sell it with the assistance of a licensed real estate agent. You don’t have to pay anything because the agent gets paid by your lender. A lender will net more money on a short sale than through foreclosure. That’s because a lender saves money on interest, attorney fees, and other related foreclosure costs.
One study found that lenders reduce their losses by 20% on average when accepting a short sale versus foreclosure.
Here is what we do when we help you with a short sale.
Step #1: We put the home up for sale and market it to find a buyer.
Step #2: We gather all of the necessary documents to process the short sale.
Step #3: After we find a buyer who wants to purchase the Fairfax VA property, we contact your lender’s loss mitigation department. We ask them what documents are necessary to submit the short sale package and how to send it to them.
Step #4: We submit the buyer’s offer and all the short sale paperwork to your lender. We have a complete checklist that we follow so everything is submitted properly.
Step #5: We follow up with your lender to negotiate the short sale. This part may take some time because many lenders’ short sale departments are busy with a ton of files. However, with a little patience and perseverance we are able to get the lender to approve the short sale.
Step #6: Upon lender approval, we then coordinate everything to a successful closing. We follow up with all the inspections, appraisals, surveys, and the buyer’s financing.
Step #7: Closing. Everything is completed and you are now out from under the burden of debt and stress. Most sellers are so glad to be done with the stress and uncertainty. It’s closure.
Thanks for reading this,
Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, ‘Inside Real Estate’
Phone: (703) 322-0600.
Thierry is an advocate for Homeowners in Distress. Thierry has made it his personal mission to help as many people as possible avoid foreclosure and keep their home.
Thierry Roche specializes in loan modifications and short sales in Fairfax Virginia. Fairfax Loan Modification Help. Fairfax Short Sales. Fairfax Short Sale Realtor. Fairfax County Short Sale Realtor. Fairfax VA Short Sales. Fairfax Realtor.
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