The "Loan Xperts" Blog

FORECLOSURE UPDATE

It has been said that we are living in "historic times." Well, that might be an understatement! CNN/Money had an excellent report out recently on the foreclosure numbers from the last quarter. Over the past three months, foreclosures hit a record high! One real estate pundit even described it as "The worst three months of all time." (Not for Short Sale investors it's not!)

Check out some of these absolutely INSANE numbers....

During the last quarter, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.

Nevada continued to be the worst-hit state with one filing for every 23 households. But even tranquil Vermont, where the foreclosure crisis has barely brushed the housing market, saw foreclosure filings jump nearly 170% compared with the third quarter of 2008. Still, that resulted in just one filing for every 5,023 households in the state -- the best record in the country.

The RealtyTrac report also unveiled the results for September, and it found that there was slight relief from foreclosure filings. Last month, notices totaled 343,638, down 4% compared with August. Unfortunately, that total accounts for 87,821 homes that were repossessed by lenders.

That deluge contributed significantly to the quarter's record 237,052 repossessions, a 21% jump from the previous three months. So far this year lenders have taken back 623,852 homes.

The Worst Thing to do is Nothing!

Unfortunately, many people facing foreclosure simply do nothing and hope for a miracle. Some homeowners seek advice from a lawyer and act on their advice and file bankruptcy thinking that all their problems are now solved. Bankruptcy does put a hold on everything, yes, but all it buys you is a little time. The end result is almost always the property still goes to auction and you now have a bankruptcy in addition to the foreclosure on your credit report!

Consider a Short Sale When Foreclosure Seems Inevitable

A short sale is a popular option for homeowners mired down with financial problems. In this case, you would sell your home for less than what you owe your lender; Experts advise pursuing this course of action the minute you realize that keeping your home is no longer a viable option. The longer you wait and the greater the amount you are in arrears, the less likely it becomes that your lender will even be willing to entertain a short sale. Simply stated, do everything you can before foreclosure occurs and do it as quickly as humanly possible. Don’t sit back and keep thinking, “What can I do?” Instead, consider that short sale and consult with an expert before its too late!

Loss Mitigation Specialists you can Trust!

The beauty of short sales is that they can be a win-win-win situation for seller, buyer and lender. Here's how: The seller gets out of the mortgage liability without facing bankruptcy or foreclosure. The buyer gets the home at a reduced price. The lender agrees to a loss it considers minimal without going through a foreclosure and being saddled with an unsalable property.

The One Best Tip We Can Give You: Don’t Do This Alone . . . Having someone who could work on your behalf is an incredible advantage when negotiating with your lender. Our office specializes in helping homeowners avoid the lasting scars caused by a foreclosure. We have a staff experienced in lender negotiations, as well as relationships with Realtors who specialize in Short Sale transactions and understand the complexities and urgency of these transactions.

In most cases our fee and the Realtors commission is paid by your lender and/or buyer. You will have no out-of-pocket expense with a short sale transaction negotiated by our staff! So if you are one of the unfortunate home owners facing foreclosure, the best advice we can give you is to ACT NOW! Call the experts at First American Financial today at (800) 252-2780 for a free no-obligation consultation