Stockton Real Estate: Alternatives to Foreclosures
As the economy continues to faultier Short Sales and foreclosures continue to be the majority of homes listed for sale in Stockton and Lodi and it looks like this will continue for the foreseeable future. Stockton Real Estate has often been referred to as ground zero for foreclosures. Distressed homeowners do have options.
Mortgage Modification
This option may allow you to refinance the debt and / or extend the term of your existing mortgage loan. Mortgage modification involves the reduction of either: the interest rate, reducing the balance of the loan, extending the length of the loan, or a combination of these. The idea is to make the monthly payment manageable. There has not been a great deal of success for this option.
Deed-in-lieu
This option may allow you to voluntarily return the home to the mortgage holder without further damaging your credit. A deed-in-lieu allows the homeowner to return the home to the mortgage holder rather than going through the foreclosure process.
Forbearance or Repayment
This allows the homeowner to negotiate with the mortgage holder to reimburse payments in arrears over a period of time. This usually involves establishing a schedule with the Lender to make a full regular monthly payment plus an additional amount each month to repay the delinquent amount over a specified period of time.
Short Sale
This option may allow you to sell your property for an amount less than what is necessary to pay off your mortgage loan. A short sale is an alternative option to foreclosure. This is an option that distressed homeowners have been choosing. Many lenders have invested in short sale programs and are actively cooperating and opting into programs such as HAFA.
Renting the Property
This has not always been successful and involves additional liability. Homeowners can offer their home as a rental if local marketplace rent will be more than enough to cover their monthly mortgage payments. The amount that the homeowner would receive in rental payments is often less than the monthly mortgage payment because of the decline in home values.
Bankruptcy
Bankruptcy is not a complete solution. It will only delay the foreclosure and has far reaching financial consequences. It should only be entertained with the advice of an attorney and careful consideration of the consequences to your financial life and future.
Refinance your mortgage
This option may allow you to use the equity that you have established in your home to pay the delinquent amount. Depending on the interest rate of your new loan, your monthly payments may be reduced. You can explore refinancing with your existing lender as well as with any lender of your choice.
Selling your property can be accomplished if a homeowner has sufficient equity and a qualified agent who understands the current market. If you don’t have equity, a short sale may be the best option. If you have any questions concerning the above options and would like a private consultation, please contact me at 209-479-9222 or e-mail me at hlilly@PMZ.com , visit our web-site at www.hughlilly.com .