How to Avoid Foreclosure? Best Options

Posted by Tristatehouse on January 9th, 2014

If you have fallen behind in paying back your house loan and expecting to face foreclosure soon, the situation is not certainly comfortable for you or your family. You might feel scared, overwhelmed or ashamed, but none of these will help you a bit to face the situation; rather proper planning can help you to do your best to make the situation better. The best ways to avoid foreclosure in New York, New Jersey or Connecticut is to opt for options like a “short sale” and “for sale by owner”. These will surely help you to make the best of the situation and will also help you get some financial stability. Here is a discussion on these two effective ways to avoid foreclosure in NY, NJ and CT.

Short Sale: Once the lender has filed an Notice Of Default against you, but has not yet scheduled an auction, contacting short sale specialist for short sale of your house can be the best way for you to avoid foreclosure. For this, you first need to make an application to the loss mitigation department of the lender for the short sale approval. In this case, the creditor agrees to receive a lesser amount than actually owed and the approval of the short sale application depends on many factors such as independent evaluation of the property, broker’s price opinion and a few other things. During the mortgage crisis, there has been a total 2.2 million short sales to avoid foreclosure.

For Sale by Owner: This has been an effective strategy to avoid foreclosure. In FSBO, the property is sold without the assistance of a real estate broker or agent; marketing your home online through listing services or employing other marketing strategies can be the best way to attract and communicate with the buyers. Here, the owner directly sells the property without a real estate agent. In this case the fees of the brokerage which are typically 6% of the selling price is saved, and as the buyer knows the seller isn’t paying any commission to a real estate agent, he believes he can get a better deal with FSBO properties.

For more details foreclosure and the method of avoiding the same, you can check out the websites that deal with this. You will get a fair idea about the procedure.

About The Author:

Tri State House is a financial investment company in Real Estate, and their focus is to buy Real Estate from financially distressed home owners in NY,NJ & CT areas that are anxious to sell (or anyone wanting to sell quickly). Although Tri State House is a buyer of properties, they also provide financial advice, credit knowledge, and borrowing techniques.