Beltran Properties

The Best Possible solutions if you are having trouble making you house payments

Are you confused with all the new housing terms? The new vocabulary includes foreclosure, auction, notice of default, trustee sale, and short sale are old terms but receintly have resurfaced again. And if you are familiar with any, especially if you have missed a payment or two, then I have some options and clarifications for you. 

Option #1 would be to ignore and walk away, allowing the bank to foreclose on you. This would be the worst case option. Not only would it put a foreclosure on your credit report, which by the way would exist for 7 years, but it would also affect you when you try to rent. The property manager would research your credit, and really would not like to have you as a tenant.

Option #2 This is very simular to option #1, but you give up possession even sooner, and still no one wins.

Option #3 is to try to work out a repayment plan. This for a while seemed to be the best answer as you can keep your home, but more and more the banks are stalling, and giving "lip service" to justify thier positions.  I have had client jump through the the banks' hoops only to be told many months later that they do not qualify, nor do they offer that plan any more. If you are one of the lucky ones to get modification, remember to check how long they will do this modification. Many times it is only for 3 years, then it goes back to the original.

Option #4 would be to do a "short sale". This option would damage your credit the least of all. The report should say "paid in full, but not as agreed". The banks would get less of a loss, than if they foreclosed, especially in a declining market. 

 

Benefits of a short sale: No foreclosure, Credit may be damaged less, Get to stay in the home until it sells

Bank suffers less losses, Less damage to the economy (fewer foreclosures) Better ability to buy a home in the future, You move out and not get evicted, and Most likely no tax on the debt relief.

 

The transaction can be complicated, so seek a professional you trust. 

If you or someone you know needs help or has questions do not hesitate to call, I am here to help