Ways to Stop Foreclosure

Posted by gerb0327 on February 18, 2010 under foreclosures | Be the First to Comment

The sadness that a person feel when they see their own home gone to foreclosure is incomparable. During these times of uncertainties, when you are facing the problem of foreclosure you feel that there is no way out. You think that there is nothing you can do to stop foreclosure from happening. You’re wrong. You can still do something stop it.

Taking actions immediately is the best thing to avoid foreclosure. If you think you can save your home from being foreclosed then don’t wait too long to do anything.

You can also ask help from someone who knows the ins and outs of foreclosures. It does make sense to have a consultation with someone who is expert on this, and he will tell you exactly what to do to stop your home from being foreclosed.

Short sale is one way to stop foreclosure. But this depends on your financial situation. It would be more advantageous to your credit score if you choose the short sale option. But for you to have a short sale, it is needed that your house mortgage is still within the current market value of the property. Either way, short sale is not always a good thing. You might lose money by this. But what’s worse is a foreclosure, because what you will lose here is none other than your beautiful home.

If you are financially troubled and you think you can’t cope with your expenses anymore, don’t lose hope. Remember that there are still options you can take to stop foreclosure from happening.

The author is a real estate marketing specialist working with Utah Cornerstone Real Estate Professionals. To know more, you can check out Davis County Real Estate, Northern Utah Homes and Real Estate in Utah.

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Strategic Defaults – Are they Ethical?

Posted by abarker on February 9, 2010 under foreclosures, Uncategorized | Read the First Comment

I listened to a podcast last night on voluntary foreclosures. It was interesting. With a voluntary foreclosure, the borrower elects too let the home foreclose, even though they can afford to make payments because they have so much negative equity.

Strategic defaults are especially popular in areas like Arizona, California, and Nevada, where home values shot up, and then plummeted down in a matter of years. People who bought during the peak have literally seen hundreds of thousands of equity lost in the flighty real estate market.

For people in this situation it becomes an economic deal. They can quickly purchase a new home for half the price of their current property, then stop making payments on the home that they owe far more than it is worth and let the bank take it back.

States like Arizona actually have laws that banks cant seek deficiency judgments for foreclosures, regardless of the reason.

My question is, is behavior like this ethical? These borrowers signed a note where they committed to pay back this mortgage loan. They agreed to these terms.

In my opinion it isn’t ethical. The bank never did them anything wrong, the owners are the ones who agreed to pay back the note when they signed it. Making banks lose $100,000′s of thousands of dollars by strategic default isn’t much different than armed robbery. Either way, the banks are going to lose money they are entitled too.

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