Phoenix, Ariz. (PRWEB) April 4, 2007
More families than ever are facing foreclosure on their homes, a red mark that can't easily be removed from their credit history. The good news is there is a way to avoid the financial ramifications caused by a home foreclosure.
When a home goes into a foreclosure, owners still have a window of opportunity in which they can sell the home. By selling, rather than a foreclosure, the effects aren't so detrimental. Ken Spohn of http://www.investorsclassifieds.com, offers the reason why so many more homes today are heading toward foreclosure than in recent years.
"Simply put, too many homebuyers trusted their loan officers," states Spohn.
He explains how the sudden rise in interest rates for people who have ARMs (adjustable rate mortgages) have caught them off guard. Many times the substantial increase in their house payments has left making the payments impossible.
"Sadly, many buyers didn't known what they what they were getting into," he adds. "They thought they were buying the American dream with a low introductory rate, but in truth, they made a deal with the devil. Now that their mortgages are starting the adjustable period, rates are higher and at prices they can no longer afford."
According to Spohn, if you plan to sell your home to avoid foreclosure, you need to consider where to sell the home and how you go about it because it makes a difference.
"If you're going into foreclosure, don't list your property with a Realtor," he stresses. "Many people make this mistake. A Realtor simply doesn't have the time to sell your home prior to foreclosure proceedings. Also, understand that you won't get the full value for your property. If you can come to terms with that, then you'll be much further ahead of the rest of the people in foreclosure."
When asked about why a Realtor lacks the time Spohn explains, "A home listed with a Realtor is usually on the market for 60 days, if not more, before finding a potential qualified buyer. From that point, it can take three to four weeks for that buyer to get the financing and close on the property. To make matters worse, after all that, sometimes the buyer might not qualify for the loan or they change their mind about buying. In the end, precious time is wasted."
So if people shouldn't be selling through a Realtor, what's the best option to consider?
"The way to sell is through a qualified investor," states Spohn. "You need someone who knows how to deal with banks and who can save you from foreclosure. You won't make as much as you would through a conventional market purchase, but it can save you from the red mark of foreclosure."
His site, http://www.investorsclassifieds.com, was created with people facing foreclosure in mind or for those who want to sell their homes quickly.
"We offer sellers a wide range of options for sellers looking to sell their property - Free listing to $199.95 for a full-year membership," Spohn says. "With full membership, their listing is also placed on Google, ByOwnerMLS.com and oodle.com. With us sellers can connect with quality investment buyers."
For people in the Phoenix area, sometimes Spohn will do the buying directly.
"We can buy many homes in the Phoenix area, usually within 24 hours, or we work with the bank to help owners," Spohn says. "Another option is to take over payments and give owners some cash if they have equity in their home."
So for those people heading toward foreclosure, there is hope out there and a place to turn so the situation is less painful and more bearable.