We all have rough times every now and again. As a property owner, a rough time may mean losing the biggest investment of your life: your Coram house. If you are unable to make your mortgage payments, you may face foreclosure by your lender once you miss a certain number of payments, depending on your mortgage documents.
Foreclosures Happen To The Best Of Us
In most cases, the foreclosure process will not begin until you have missed several payments. First of all, it is important to understand that foreclosure is a process. The first stage is often called pre-foreclosure. This means that the loan is in default and the lender may move to foreclose. During this time, an owner may try a short sale, selling the property before the bank forecloses when the market value is short of the balance due on the loan. Depending on the lender, they may or may not accept offers for less than the balance due. If the owner can get the lender to approve a short sale, it is generally much better for their credit. If not, the property may go to a foreclosure sale, where the lender tries to recover as much as it can. If the property does not sell at that point, the bank takes ownership and it becomes an REO, which stands for “Real Estate Owned,” and the bank puts it on the market.
A foreclosure impacts your credit score and also shows up in reports that future landlords run. It typically stays on your credit report for about 7 years. In New York, foreclosure is a court process and can take a long time, but once it is complete, you will have to move out.
Is A Short Sale Really The Answer?
During the foreclosure process, you have the opportunity to sell your Coram house as a short sale. The best time for a short sale is when you realize you are unable to make your payments and before the foreclosure is completed. You can try to get an offer that will satisfy the balance of your loan or get really close to it. This can be a difficult process because you will have to stay in constant communication with the lender about the offers you receive and wait for them to approve or counter. If you get an offer the bank is willing to accept, selling your Coram house to that buyer can spare you some of the credit damage of a foreclosure, although it will still negatively affect your credit.
The best option is to avoid the foreclosure process altogether and sell your property before you get to the point of missing payments on your loan.
Contact Gull Group Inc today at (631) 926-0047 to see what options we can offer you, so you don’t have to choose between a foreclosure and a short sale of your Coram house.
Need to sell your house fast? Get a fair, no-obligation cash offer from Gull Group Inc. Call (631) 926-0047 or fill out our short form.