| Did you know that bank foreclosure is at a 30 | | | | You can use 'preclosure sale'. This option gives the |
| year high? | | | | buyer time to be able to ell the property n order |
| There are various reasons for such high levels of | | | | to avoid bank foreclosure. The buyer can also |
| bank foreclosure such as: unemployment, an | | | | receive equity from the sale representing cash in |
| erratic stock market, and the fact that the cost | | | | pockets which is profit to the buyer. |
| of home ownership had increased. Isn't it 'cool' to | | | | A last resort option to foreclosure is what s called |
| know that alternatives exist to bank foreclosures. | | | | a 'deed -in- lieu-of foreclosure'. In plain English it |
| As a buyer here's some of the thing s that you | | | | simply means voluntarily give the property to the |
| can do. | | | | lender. For this to be legally binding the lender |
| You can try to obtain a 'special forbearance'. This | | | | must agree. This agreement usually means the |
| is an arrangement made with the lender whereby | | | | lender finds it profitable to go ahead. The |
| you can obtain a temporary suspension of | | | | downside to this is that you cannot receive any |
| payments. These missed payments which include | | | | equity from the sale. The upside is you avoid |
| delinquency fees and interest can then be added | | | | attorney fees. Avoiding foreclosure far outweighs |
| to the outstanding loan balance. The structure of | | | | the loss of equity. |
| the repayment plan varies depending on the | | | | If you are behind on you monthly payments then |
| lender. For instance, one lender may charge the | | | | you should consider an alternative option to bank |
| balance against the future proceeds of the | | | | foreclosure. Foreclosure results in adverse credit |
| property; another may lower the interest rate on | | | | and other financial difficulties. It would be very |
| the loan or even lower the payments for a | | | | hard to obtain future mortgages with foreclosure |
| predetermined period of time. | | | | history. |
| Another alternative is to obtain a partial claim. | | | | On the flip side if you are the lender bank |
| Under this arrangement the lender may obtain an | | | | foreclosure results in losses which are best if |
| interest free loan from the Federal Department | | | | avoided completely. Both lender and buyer should |
| of Housing and Urban Development (HUD). This | | | | be proactive resolving possible foreclosures since |
| loan can then be used to bring the monthly | | | | it is a win-win for both parries. |
| payments up to date. | | | | |