Foreclosure Alternative Options
Although tackling the problem of foreclosures is difficult it is not impossible. There are many foreclosure options – provided one hunts for these. Peter Goodman is an attorney. Since 1992 he has been dabbling in real estate and is keen to help the novice buyer. He has been asked to speak on various on what options and help are available for foreclosure victims. Together with Rafael Jose, Peter Goodman has set up Good Home Help a Loss Mitigation company. They are attending to individual distress calls. Borrowers are being helped to continue to stay in the houses that are their homes until finances can be worked out to bring down the mortgage to affordable levels. In cases where even this much the house owners cannot afford, then alternative arrangements are made for selling the unit.
A short sale benefits both sides. The lender does not have to go through the time, money and energy consuming process of foreclosure while the borrower is spared the ignominy of foreclosure that leads to loss of credit rating. In a short sale the value of the house is less than the loan amount. Part of the debt is thus forgiven. The other alternative is deed in lieu of foreclosures. The house is handed back to the lender to do what it will do while the borrower escapes the dragnet of foreclosure. It is now the responsibility of the lender to sell the house and realize whatever can be salvaged. More often than not the lenders usually agree to a short sale because then the latter does not suffer the hassle of selling the unit. Most of the units can be bought for a price that is less than the 15% or even 20% of the current rates.
Taking advantage of the naïve borrowers boiling in the foreclosure cauldron, many unscrupulous scammers are taking advantage. In the name of help they are picking the bones of the half dead foreclosure victims. They are taking advantage of the short sale possibilities. Another mode of operation is fabricating a HUD related settlement while flipping the unit for a quick profit. These operations help neither the borrower nor the neighbourhood. It only lines the pockets of the scammers who soon vanish from sight.
The approach of Good Home Help is new. They are trying to pair house owners with potential buyers. Many organizations – government and non-government groups are sanctioning loans to those qualified to buy foreclosed houses. Good Home Help provides the link.
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