If you’re in default on your mortgage loan and facing the possibility of foreclosure, perhaps you are wondering if you can you get your house back after a foreclosure. After all, you need a place to live! Unfortunately, after the court rules in the favor of your lender and agrees with the lender to proceed with foreclosure, it is very hard for you to get your house back. The good news is that if you’re not in foreclosure yet or even if you are, you do have options if you are decisive and take action.
Payment Plans – The first and best option is to pay off your mortgage or work out a payment plan with your lender, but ONLY if it makes sense financial sense to keep your home. Banks prefer to keep you in your house and instead just collect the money owed to them as this option costs them the least amount of money. However, statistics clearly show that owners who have gone done this path often ending up losing their house to foreclosure in the next couple of years anyway. This often occurs because the fundamental causes for the foreclosure are often not that easy to correct and because the house is just a bad investment. Trying to stay in the home that is underwater, especially in an expensive area like Long Island, NY is often just dumping more money and more money into a bad investment. I know its tough to handle as a house is not just an investment for people, its their home and often filled with many memories. Unfortunately, banks and other lenders don’t really care about that. You have to try and separate yur emotions and make sound financial decisions.
Sell and Payoff Mortgage – If that’s not an option for you at this time then you may decide to do what a lot of homeowners facing foreclosure are choosing to do: Sell your home before the house is foreclosed upon and pay the lender what is owed to them. While not an ideal option (because you’ll have to give up your house), it’s still a preferable option to foreclosure because you’ll have cleared up your debt to the bank and you won’t have the long-term impact to your credit score that a foreclosure would have. This option is proactive and long-term, which is why homeowners facing foreclosure love it: it’s proactive because you’re taking control of your financial situation; it’s long-term because you’re accepting the short-term discomfort of selling your home in exchange for the long-term benefit of a better credit rating.You could work at trying to find a buyer to take your home. However, a faster and easier option is to find a cash home buyer in Long Island, like our company, Comax Properties that will buy the house from you quickly and for cash.
Do A Short Sale – Now what happens if there is not enough equity to pay of the house and pay off the bank and other lien-holders? Unfortunately, most of the people we help are in this exact situation. In this case the best option to get out of a foreclosure on your Long Island, NY home is to work with the bank or other lender(s) to do a Short Sale on the property. With a short sale, the bank is agreeing to let you sell your house to a buyer for less than what is owed on the mortgage loan. In exchange for your cooperation, the bank will absorb the difference between what is owed on the property and what the house ultimately sells for.
While short sales work great to get homeowners out of a foreclosure and happen all the time in Long Island, NY, the short sale process is rather difficult and should not be attempted by a homeowner or an inexperienced realtor. Simple mistakes in filling out forms and meeting paperwork deadlines can make the difference between a successful short sale and a house that ends up being foreclosed on. If you are not careful, you could end up with something called a deficiency balance. A deficiency balance is the amount of money that the bank lost by allowing you to sell your house for less than what was owed. During the short sale process you must negotiate with the bank to have this amount waived, otherwise after the short sale and even years later, they can come after you for the money. Deficiency balances are routinely waived in Long Island, NY short sales, but the devil is in the details, and you have to work with an experienced short sale negotiator to ensure that it will be waived (in writing!) on your short sale.
At Comax Properties we help people get out of foreclosure using short sales all the time. Let us put our team of professional attorneys, realtors and short sale negotiators to work for you. Oh, I almost forgot the best part. The cost to you to do a short sale is totally FREE. The bank pays the realtors, negotiators and attorneys that are working for you! We will never ask you for a check or other payment to work on your Short Sale!