The 411 on MA Short Sales & Foreclosures [Part 2 – Options]

What options are available to Massachusetts homeowners looking to sell their homes? What potential impacts could these solutions have on credit, social lives and trying to buy a new home?

In Part 1 of this series we covered the Massachusetts foreclosure process and what short sales are. Now let’s take a look at some of the other options for stopping or avoiding foreclosure, and what the implications of those choices could be…

Here is a list of some of your options:Foreclosure

  1. Reinstate your Loan – You will need to contact your lender and ask them to reinstate your loan.  This requires you to pay a lump sum for any missed payments, including principal, interest, taxes, insurance and any penalties.
  2. Loan Forbearance – The goal of mortgage loan forbearance is to help you get your home loan payments reduced or suspended for a short period of time.  It is important to understand that for you to qualify, the circumstances that you’re experiencing must be temporary.  When your situation has passed, the bank will require you to repay the past due amount, including principal, interest, taxes and insurance.  Some examples that may qualify include a short-term layoff, a short-term medical condition or a natural disaster.
  3. Loan Modification – You will need to work with your lender to change the terms of your mortgage to make it more affordable.  In order to qualify, you must be facing great financial hardship, having difficulty making your mortgage payments and facing foreclosure.  There are legal and processing fees that you will pay or these fees will be rolled into your new mortgage. Since many homeowners are having difficulty getting qualified for a loan modification, the Obama Administration instituted the Home Affordable Modification Program (HAMP) to provide homeowners with a government-backed alternative. 
  4. Refinance – If you have equity in your home you can refinance your home.  Unfortunately, unless you put down a large sum of money when you purchased the home or bought the home 10+ years ago, many people will not qualify for this option.
  5. Deed in Lieu of Foreclosure – This is when you transfer ownership of your home over to the mortgage holder.  It’s essentially the same thing as foreclosing on your house only you don’t go through the long foreclosure process.  This is referred to a ‘friendly’ foreclosure.
  6. Bankruptcy – Bankruptcy can sometimes restructure your debt so you can repay them over a period of time (usually 3-5 years). You must make all mortgage payments on time during the bankruptcy repayment plan.  Failure to do so may cause the bankruptcy court to lift the automatic stay and allow the mortgage company to resume the foreclosure proceeding.  This should usually be your last option.
  7. Sell the Property Yourself – You can put a For Sale sign in your yard and list the property in the newspaper.  This usually doesn’t yield quick results because you are not reaching a large buyer pool.  Also, if you cannot sell the property for an amount equal to or greater than the mortgage balance, you will need short sale approval from your bank.
  8. Sell though a Realtor – When listing with a realtor, you are marketing to a much large buyer pool when compared to selling the property on your own.  This will increase your chances of selling your house.  However, there is no guarantee that your house will sell and if you do sell, you have to pay a 4-6% realtor commission.  That’s $12,000 on a $200,000 sale price.  Also, if you cannot sell the property for an amount equal to or greater than the mortgage balance, you will need short sale approval from your bank.

 

Due to mortgage lenders speeding up foreclosures and seeing more profit in repossess homes rather than working with homeowners today, most have no option but to sell. Plus, the dramatic increase in total borrowing costs of many loan modifications, and serious long term personal and career implications of bankruptcy make it unattractive to stay even if these may be options.

How JS2 Homes LLC Can Help YouHouse sinking in water , housing crisis,flooding, ect. concept

1. We can buy your house in cash – This is the simplest and best option if you want to get out of your property quickly.  Unlike many of the other options, there is absolutely NO cost to you. We buy homes with CASH and pay all attorney and processing fees.

2. You can use our in-house real estate agent [LINK] to list your home – Many people don’t realize that most real estate agents don’t know how to deal with a short sale or foreclosure.  These are specialized fields of real estate that require the proper professional.  Our in-house real estate agent and her associates are highly experienced in short sales and other unique situations.  

3. I can connect you with a Short Sale Negotiator – We work with a number of experienced short sale negotiators that can guide you through the process.  Similar to real estate agents, not all short sale negotiators are the same.  Our negotiators have been over 95% successful in getting short sales approved.

Find Out More Now…

Whether in foreclosure, underwater, about to fall behind on payments or interested in learning more, contact JS2 Homes LLC today at (978) 295-9850.