Facing Foreclosure? What are the viable options?

Posted by Jeff Edmisten on March 1, 2010 // 0 Comments

Approximately 1 in 7 homeowners in America are in a “distressed property” situation.  Meaning, they are in default or delinquent on their mortgage by 60 days or more.  The other common denominator in most of these distressed homeowners is that they do not know what to do.  They do not understand their options.  This is a statistic that applies on a national level, but certainly sees it’s application here in the Fredericksburg real estate market.

I want to spend a couple of days discussing those options, in general terms, as there is only so much I can put into a blog post.  But, we are available to discuss any issue in more detail, either telephonically or in-person. 

Let’s start with understanding that there are 7 basic options for someone who is in a distressed property situation.  Let’s look at what those options are:

1. Refinance
2. Sell and bring cash shortage to the closing table
3. Lender Workout
4. Short Sale
5. Deed in Lieu of Foreclosure
6. Foreclosure
7. Do nothing and walk away

We will discuss each of these in turn in a little detail over the next week or so.  I will take each issue one at a time, to try to shed some light on each scenario.  So check back for updates over the next few days.

Remember, nothing printed here is intended to be legal advice, and we always recommend our clients consult with legal and tax professionals before making any decisions.

Category : Blog