Think About These Options Before Considering Foreclosure

I’m a realtor in Westchester County, NY. As the economic climate has continued to worsen, I’ve found myself with a multitude of clients confronted with trying to sell their distressed property. Because of the current housing crisis, home values if Westchester County have taken a dramatic fall. White Plains, Mount Vernon, New Rochelle, and Armonk have all reported consistent double digit declines in the value of their home over the last few years. That decline has naturally led to many distressed homeowner’s finding they now owe more than their home is worth. If you find yourself in a similar scrape, here are a few options to consider.

If you have fallen behind in your monthly mortgage payments, you might find that your lender is willing to help you out with any one of a few options. They might temporarily reduce or waive your payments and set up a short-term repayment plan (they will then of course add the unpaid balance to the principle of your loan, so your overall payments will face a slight increase). The typical lender doesn’t want to foreclose on a distressed property. This is especially true in today’s market. If this is the situation you find yourself in, you will need to speak to the loss mitigation department. One word of warning – make sure you follow through with whatever arrangements are made between you and your lender. They will be far less likely to be so understanding the second time around.

If you find that selling your home is the best course of action, find a reputable realtor and put your distressed property on the market immediately. The conditions of the market will not always facilitate a beneficial sale, but the right real estate agent will help you to determine what price is most suitable for your needs. Just because you’re a distressed homeowner with a distressed property, doesn’t mean you should be forced to lose it all.

If your house has been listed for a while, but you still owe more than the home is worth and have yet to receive any offers, you might wish to do a deed in lieu of foreclosure. What this means is that you are offering the lender the deed to your home in addition to any revenue generated from a sale in exchange for a release from the mortgage.  This may work for the lender because even though they may face a minute monetary loss, they are saving themselves the time and difficulty of a foreclosure lawsuit.

If you are in Westchester County, or any of the surrounding cities, give me a call and let me help you with your distressed property.

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