While the economy is in better shape, there are still many homeowners in a distressed situation. Unfortunately for homeowners, banks are speeding up the foreclosure process, which means there is less time to act to avoid the legal action of a foreclosure than ever before. Last month, new foreclosure filings rose in 26 states. Banks may have less tolerance than ever due to home values rising. This is an assumption, but all makes sense. In some areas in the nation, home values nearly doubled. Home values have been steadily rising across the nation, and more buyers and investors have edged to the market. As for foreclosures, we saw an 80 percent increase in May.
Some homeowners aren’t aware of their foreclosure options, while other just didn’t or don’t do anything about it. Now is the time to find an option as property values are going up and if you can hold on to your home, you will be building equity at a much faster pace.
There are foreclosure options that all homeowners facing foreclosure should look into. Let’s take a look at a few:
- Loan modifications
- Hiring a foreclosure defense attorney
- Short sale
- Finding an investor and selling your home for fast cash
If you’d like to hold onto your home than refinancing or a loan modification is the solution. Here, your best bet is to first speak to your bank. Many banks will work with homeowners in distressed situations to help avoid the foreclosure process. As mentioned earlier, it is more important than ever to act fast, however as banks are speeding up the foreclosure process.
A short sale is an option, and will need to be approved by your bank. With a short sale, your bank allows you to sell your home for less than the mortgage balance owing. Many times, you will also be offered a relocation fund, which can be anywhere up to $3K. Short sales have a less dramatic impact than a foreclosure.
Finding an investor and selling your home for fast cash is a solution to get out of your mortgage and put some cash in your pocket.
Obviously, bankruptcy should be avoided if at all possible. If you find yourself in a position where the only solution is bankruptcy, you should first speak with an attorney.