Are you behind on your mortgage payments, or concerned that you soon might be?
Have you received a preforeclosure letter from your lender?
First of all, don't be ashamed. Millions of homeowners are in your situation – many times through no fault of their own. A job loss, a serious illness or other circumstances can put you in danger of foreclosure.
The economic downturn has led to many homeowners being "under water" in their loans, meaning they owe more than their home is worth, making it impossible to refinance.
If you've become one of those millions, don't panic. Foreclosure, and its accompanying effect on your credit, is not inevitable. There are many options out there, and your circumstances may make one of those options feasible and desirable for you. You can Avoid Foreclosure Dallas-Fort Worth!
To keep your options alive, you need to communicate with your lender. Many homeowners have lost their homes to foreclosure without ever contacting their lender.
This would also be a good time to consult with a tax advisor and a Celebrity DFW Real Estate Agent. Celebrity DFW Real Estate Agents are specifically trained to work with distressed properties, and will be able to help you explore your options to Avoid Foreclosure in Dallas-Fort Worth.
Many lenders would rather not foreclose. They take a large financial hit on a foreclosure. So in many cases, they'll consider viable alternatives. Some of these alternatives may keep you in your home.
While only certain homeowners will be able to take advantage of this alternative, it may be your best option because it keeps you in your home and typically results in the least damage to your credit.
Your lender may be willing to modify the terms of the loan, whether it's reducing the principal, lowering the interest rate or other creative strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for banks that use this strategy as an alternative to foreclosure.
Short Sales Dallas-Fort Worth
This is the fastest growing alternative for Avoiding Foreclosure in Dallas-Fort Worth and across the country. Many lenders will allow a Short Sale, which is when the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, Short Sales generally take less time than foreclosures, so the banks don't have to carry the properties on their books as liabilities.
And it's attractive for homeowners because the impact on their credit is far less than in a foreclosure. You may be able to buy another home in as little as two to three years after a Short Sale, compared with a typical seven-year wait after a foreclosure.
Short Sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained Real Estate Agent who knows all the steps required to successfully complete a Dallas Short Sale. Visit our Short Sales page to learn more about Dallas Short Sales or Contact Us today to discuss if this option is right for you.
Celebrity DFW Short Sale Specialists are specially trained to handle these more difficult types of transactions. They understand the intricacies of these transactions, and they'll be able to advise and counsel you every step of the way.
Do you think a Dallas-Fort Worth Short Sale may be right for you? Do you live in any of these cities: Dallas, Addison, Allen, Argyle, Arlington, Balch Springs, Bedford, Carrollton, Cedar Hill, Coppell, Corinth, Denton, Desoto, Duncanville, Euless, Flower Mound, Fort Worth, Frisco, Garland, Glenn Heights, Grand Prairie, Grapevine, Haltom City, Highland Park, Highland Village, Hurst, Irving, Keller, Lake Dallas, Lancaster, Lewisville, Little Elm, Mansfield, McKinney, Mesquite, Murphy, North Richland Hills, Oak Point, Parker, Plano, Richardson, Richland Hills, Rowlett, Sachse, Saginaw, Seagoville, Southlake, Sunnyvale, The Colony, University Park, Wylie or somewhere else in the Dallas Fort Worth area?
Then we can help! Contact us today to speak to a Celebrity DFW Dallas-Fort Worth Short Sale Specialist!
The Federal Housing Finance Agency (FHFA) has announced guidelines for streamlining and simplifying the Short Sale Process. Read more about the plan.
Keep in mind that no matter which option you choose, there may be tax and other financial consequences. You should consult with a tax advisor or legal expert.
Deed in Lieu of Foreclosure
A Deed in Lieu of Foreclosure is where you, the homeowner, voluntarily transfer the ownership of your property to the owner of your mortgage in exchange for a release from your mortgage loan and payments.
The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he/she would in a formal foreclosure. Another benefit to the borrower is that it hurts his/her credit less than a foreclosure does. Advantages to a lender include a reduction in the time and cost of a repossession, lower risk of borrower revenge (metal theft and vandalism of the property before sheriff eviction), and additional advantages if the borrower subsequently files for bankruptcy.
It is our experience, however, that lenders typically will not accept a deed in lieu due to the legal implications it presents for them. If a lender accepts a deed in lieu and there are other mortgages, judgments or liens on the property, the bank becomes liable for them. The lender therefore, will prefer to foreclose since this will clean the title of any subordinate mortgages, judgments and liens.
Foreclosure (Cash for Keys)
One of the biggest problems in foreclosures is that homeowners sometimes physically damage the property, or even sell some of the fixtures, before leaving. Needless to say, this is not a good idea. It may expose the homeowners to financial and legal liability. It also makes the properties much more difficult to sell.
To prevent this, some lenders offer a program called "Cash for Keys." The homeowners receive a check for vacating the property within a certain time period and leaving it in good condition. If you have no alternative other than foreclosure, you should ask the bank about this option.
Tips From HUD
The U.S. Department of Housing and Urban Development has 10 tips for avoiding foreclosure in Dallas-Fort Worth and across the country:
Some additional resources to help you avoid foreclosure:
For Fannie Mae loans:
For Freddie Mac loans:
Avoid Foreclosure Dallas-Fort Worth! You have options. Contact us today to discuss your options and what is right for your situation!
We can help you Avoid Foreclosure in: Dallas, Addison, Allen, Argyle, Arlington, Balch Springs, Bedford, Carrollton, Cedar Hill, Coppell, Corinth, Denton, Desoto, Duncanville, Euless, Flower Mound, Fort Worth, Frisco, Garland, Glenn Heights, Grand Prairie, Grapevine, Haltom City, Highland Park, Highland Village, Hurst, Irving, Keller, Lake Dallas, Lancaster, Lewisville, Little Elm, Mansfield, McKinney, Mesquite, Murphy, North Richland Hills, Oak Point, Parker, Plano, Richardson, Richland Hills, Rowlett, Sachse, Saginaw, Seagoville, Southlake, Sunnyvale, The Colony, University Park, Wylie or anywhere else in the Dallas Fort Worth area!