(PRWEB) June 18, 2005
Los Angeles, CA (PRWEB) June 17, 2005 Â To stop foreclosure, homeowners are often in the dark when it comes to finding foreclosure help. There are matters to consider when preparing to sell your home to stop foreclosure besides the obvious time constraints. Some foreclosure options will affect your credit more than others. Foreclosure options and foreclosure help are available for free at http://www.RealtyBites.net.
In Part I and Part II of this article, we covered ways to stop foreclosure and unscrupulous, unethical mortgage lenders that might take advantage of consumers. A quick reminder, ignoring the notices does not stop foreclosure. After contacting the mortgage company to arrange ways to repay the arrearage, making an effort to borrow from friends or family, attempting to work out an ethical and affordable loan from a lender, researching assistance programs, and still not able to stop foreclosure, you may need to sell your property.
The sooner you start preparing your home for sale when selling by owner and using a Multiple Listing Service (MLS) or listing with a realtor and MLS, the better your chances of getting a fair market offer to purchase your home. There are matters to consider when preparing to sell your home to stop foreclosure besides the obvious time constraints:
1. Is your home in good enough condition to be sold at fair market value (same price as similar properties in your area)?
If not, can you afford to fix it up? When you sell your home in need of repair, the sale price will have to be "discounted" for the buyer to fix up your home.
2. Do you have enough time to sell it?
Many owners wait for their "pending new/refinance loans" and by the time they find out they cannot get financing, there is not enough time to sell the house with a Realtor. The longer you wait, the more likely you will need to sell your home to an investor who offers "a quick closing, all cash transaction" for significantly less than fair market value. If you have time to list with a realtor, be sure to limit the length of time for the listing agreement in case it does not sell and you want the option to sell to an investor. Investors, as opposed to owner occupant buyers, cannot legally purchase properties in default listed with realtors for various reasons.
3. Realtors tend to charge 5-6% commission in todayÂs market.
4. Ready to sell to an investor?
Beware of an investor that offers to buy, rent to you, and sell back to you later. A lease with affordable rent would be required or plan on being evicted when you cannot afford the rent. In terms of buying back the home, it is likely to be sold to you at an inflated price that you cannot manage to pay and be back in the same boat as before. Get it in writing.
There are several advantages to choosing to sell to a private investor. The sale can be finalized and the money paid to you within one week or at a mutually agreeable date. Ordinary burdens of selling your home are paid for by the investor including termite, roofing, structural, plumbing and any other inspections as well as the necessary repairs. The investor pays escrow, title search, and recording costs. There is no realtor commission. Foreclosure will not be on your credit record.
When considering bankruptcy, this decision is not to be made lightly and requires careful consideration. Seeking professional advice is strongly suggested as bankruptcy will remain on your credit history for up to 10 years. This makes renting an almost impossible task. Ask how release of stay can affect the foreclosure process on your home. Get bankruptcy FAQ at http://www.caeb.uscourts.gov/faq/faq.asp#1.
A Deed-in-Lieu of foreclosure is a voluntary conveyance of title to the lender. In other words, you are giving your home back to the bank. Generally this is a last ditch effort to avoid the negative consequences of foreclosure. In return for the voluntary conveyance to the lender, you are often, but not always released of any personal responsibility for the mortgage. In order to qualify for a DIL, most lenders state that there must not be a second mortgage or liens on the property. Properties with equity should consider selling the property before voluntarily conveying the home to the lender. A DIL on a VA loan can possibly affect your ability to get another VA loan and other VA benefits. Contact the VA for more info at http://www.hud.gov/foreclosure/index.cfm.
There are countless ways to deal with difficult situations. Realty Bites investment company offers access to a network of solutions with no referral fees. Immediate information and foreclosure help for distressed homeowners can be found at http://www.RealtyBites.net or toll free by phone: 866.780.8380.
About Realty Bites, The HomeownerÂs Foreclosure Alternative:
Realty Bites is based in Los Angeles, CA and offers relief to homeowners nationwide. By adding online and toll free assistance, homeowners have been able to find a fresh start from all over the world.
Bella E. Samuel
Realty Bites, The HomeownerÂs Foreclosure Alternative
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