Following are some facts about foreclosure-
A. Subprime mortgage is available to individuals with a low credit score because it offers a low introductory interest rate. As time passes, however, the interest rate increases causing many complications for the borrower. With the increased interest rate, making payments becomes difficult for the borrower. It is said that approximately 40 % of subprime mortgage loans are the main cause for a foreclosure.
B. Unemployment is said to be the primary factor for foreclosure in approximately 55% of the cases. Without a steady flow of income the borrower is unable to pay the bills etc. Before unemployment, you received a loan based on your income and the stability of your account. Now, with instability of the income source, the property fast heads towards foreclosure. Therefore, the economic conditions can be a factor and the driving force for a foreclosure.
C. Events such as a death, divorce or an unexpected illness can also push you to face a foreclosure. In an unfortunate event, if the sole provider of the family dies, then the mortgage loan is likely to be left unpaid. When undergoing a divorce, several times miscommunication and cost of the divorce can lead to a foreclosure. In health related matters, foreclosure occurs when the money is directed towards payment of the hospital bills and the mortgage payment is left unattended.
Every unfortunate event- whether it is unemployment, death of a spouse or a divorce- is followed by a bigger more devastating affair known as foreclosure. It is the time when a borrower fails to make payments to a lender. The lender can be an individual or an institution, providing the money for a borrower to make payments for a house. When the mortgage payments are left unattended, the lender issues a legal action and sells off the house. Under this situation, the borrower and his family are left shelter less.
When a foreclosure is inevitable or when you feel the hint of a looming foreclosure, then it is best to opt for a short sale. Under this option, a REALTOR helps you sell your house for a lesser price (hence the word short sale) than its actual value to pay off the entire mortgage loan or some portion of it.
After the lender permits the seller to sell off the property for a lower price, he actually forgives the remaining part of the loan. The two benefits for this are- firstly, the lender does not to bear the expenses of a foreclosure suit. Secondly, a foreclosed property is a hard piece of land to sell, therefore, a short sale provides some amount of cash to the lender.
A Reliable REALTOR
The 1035 Bluebird Cir, Kingston Springs residents in Tennessee had a similar situation. After receiving a second loan service from the Bank of Nashville, their property came face to face with the threat of a foreclose. With the help of a real estate specialist, however, the sale was closed in 160 days for $ 180000.
Jim McCormack was the specialist who helped solve their problem. If your property needs the help of a specialist, contact him now.