What to Expect With A Foreclosure

Written by admin on 24 February 2009

If you’re an Orlando homeowner teetering on the edge of financial collapse, President Obama’s foreclosure relief program may not arrive in time to save your home. You may think foreclosure is an option but do you know what to expect? An article by David Colker of the Los Angeles Times offers some insight.

You could continue paying as long as you can scrape the money together, but Mike Hines, a speaker for NeighborWorks Homeownership Center in Sacramento, says that plan frequently fails. “There is a point where you are just throwing money into a ship that’s sinking, I’ve seen people run up $10,000, $20,000 on credit cards to try and save their house, and they lose it anyway.”

Hines says homeowners who call to negotiate with their lenders are usually routed directly to the collections department, but it’s good to get your attempt on record and keep track of all calls made by you or to you.

When you’re late, you’re late. The no-penalty grace period applies to the late fee not your status: One day past the due date and your officially delinquent. Calls from the collections department may begin. If your history shows payments made consistently 11 days past the due date with never a missed payment, you probably won’t be bothered, but it depends on you lender. Initial calls may be friendly but will quickly deteriorate into suggestions of selling your car, cashing in your 401k or borrowing from relatives so you can make your mortgage payment.

Esther Cadavid, chief development officer for the Los Angeles Neighborhood Housing Services, reports their organization provided counseling to 5,500 homeowners with mortgage problems. In spite of their efforts, the results were not promising. “About 6 out of 10 families that we saw were not able to save their homes,” Cadavid said.

If the worst happens and you’re not able to make your payments, the lender will initiate the foreclosure process and file a Lis Pendens with the County. This puts everyone on notice of a pending law suit which is soon followed by the actual suit. At that point the clock is ticking until you’re evicted and the property is offered for sale at the County Courthouse. You may still stop the proceedings by paying all past due payments, fees and penalties and bringing your mortgage current. Or, there’s a possibility of having the lender approve a loan modification but you’ll have to meet certain requirements including proof you can make the adjusted payment. And, of course, there’s the remote chance that the President’s relief plan will move faster than predicted.

What else can you do? Consider a short sale. Homeowners may find a quick sale of their property offers the best solution to their current mortgage woes. Learn the basics of short sales or talk with an experienced short sale agent to know if this option is right for you.

Is A Short Sale Right for Your Situation?
Find out today: If you live in Central Florida, contact The Orlando Property Group, your experienced short sales agents, specializing in real estate in Lake, Seminole, Orange, and Volusia Counties.

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If you are wanting to sell your Seminole County or Orlando area home in the next 6 to12 months, now is the time to begin putting your plan into place while time is still on your side. Please contact us for any real estate assistance you may need.

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