Within this post we're going to talk about solutions to foreclosure and the aftereffects that may occur if you decide to let the bank forcefully take back your property. We'll go over subject to, short sales, straight purchases and a number of other options.
So, your property in Miami is in foreclosure and you're desperately searching for a solution. Hopefully I may have the chance to bestow upon you several solutions that will help you and your family survive the storm.
Foreclosure can have ruinous effects on personal and business credit for as much as 7 to 10 years. Some say letting a foreclosure transpire is worse than going into bankruptcy. Perhaps it has something to do with the 'American Dream' of having a home and letting get repossessed. Back between the years of 2006 and 2010 everyone and their dog was loosing their house. Fortunately that does not need to be you.
If your Miami house does actually enter into foreclosure you might be facing several issues. The first is the most obvious fact; your credit score will plummet about 450 points and the foreclosure entry will remain on your credit for 7 to 10 years. After you loose your home it will be VERY hard to obtain another or even rent an apartment. I'm sure you don't like the idea of being homeless or living with friends and relatives. In addition to that, the bank may come after you for what is called a deficiency judgment. This occurs when your property sells at auction, after it has been reclaimed, for short of what you owe. So if your mortgage is $200k and your property sold for only $100k at the courthouse steps, then you're liable for the remaining $100,000. The bank can garnish your wages and seize any assets you obtain until the $100,000 is paid off. Yes, it does seem very draconian but that's how the system works. Banks these days have too much power and you're much better off discovering a solution instead of twiddling one's thumbs.
Speaking of solutions, you can always sell your property before the auction date. By doing this there will be no deficiency judgment and your credit will be salvaged where you'll have the chance to move on with your life much sooner than 7 to 10 years. If you have equity, you can sell your Miami house very quickly to a person just like myself where you can close in as little as 20 days. You'll be guided throughout the entire process from beginning to end and you won't have to bother with any step of the procedure to sell your home.
You can also check out a solution called a 'Short Sale.' This solution takes longer than 20 days but is still worth it. If you owe more on your home than its worth, the mortgage balance can possibly be negotiated down and your property sold with little effect to your credit and in many cases, you won't have to worry about the bank coming after you for the remaining balance.
We can also do something called a 'Subject To' takeover. This solution involves the buyer, me, taking control of your payments and/or bringing them current and taking the property ownership from that point on relieving you of any worries or responsibilities. This is also a good solution if you owe exactly what the property is worth or a little more and you wish to maintain stellar credit by keeping the mortgage current but you no longer want to own the residential property or house in Miami.
If you'd like to learn more about how you can stop foreclosure you can always call me at 305-349-3231.
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