ATRE LogoForeclosure --Avoid it if you can.

Foreclosure is a lengthy and expensive legal process., a last resort that often provides the least desirable outcome for both lender and borrower.
There are other, less costly and less damaging ways to address the problems of lenders and borrowers, all of which make use of one important instrument, the Comparative Market Analysis (CMA).

Sale: Even during a down housing market, homeowners may have more equity remaining in their homes than they realize. A current CMA gives homeowners that essential information. It can show the possibility of listing and selling the home, paying off the mortgage, cashing out the equity and moving to more affordable housing.

Short Sale: If homeowners cannot afford to keep their homes, and also cannot sell their homes for a price that pays off the mortgage, an alternative is the short sale. Based largely on a current CMA, mortgage lenders may approve short sales, meaning that lenders will accept less than what is owed and forgive the homeowners' unpaid debt.

Refinance: The Loan-to-Value (LTV) ratio determines whether homeowners qualify for a new loan to refinance their current mortgage. Sometimes borrowers can consolidate other debt into the new loan. It is the CMA that helps mortgage lenders calculate these possibilities.

Loan Modification: When homeowners can show that they owe more on their home that it can be sold for (being "upside down"), mortgage lenders know that they have much time and money to lose by foreclosing. A current CMA may convince lenders that there is less to lose by approving a loan modification request to ease the borrowers' monthly payments.

Short Refinance: As in a short sale, mortgage lenders who agree to a short refinance will accept less than the full balance due on the existing loan. Homeowners can refinance this (now) less-than-full-balance loan into a new mortgage loan with lower monthly payments. Before agreeing to a short refinance, lenders want a CMA that shows the property is truly worth less than the balance owed.

Principal Forbearance: In a principal forbearance the lender does not forgive the difference between what’s owed on the property and its current market value. Instead, the lender agrees to collect the difference later - when the homeowners sell or refinance the property. The new monthly payment is calculated on a lower principal balance, resulting in a lower monthly payment. The CMA is key for establishing the property’s current market value.

You may obtain a free CMA from Action Team Real Estate.
If you own a home or condominium in the Sarasota-Bradenton area
and are concerned about possible foreclosure, contact Rod Rawlings,
Licensed Real Estate Broker, at (941) 713-4446.
There is no cost or obligation.


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