| • Sell your home.
I know sometimes this can be a tough decision, because you may have
raised your family in the home or you may have inherited it. However,
do not let the emotional attachment limit your options. For example,
many people are so emotional about their home, they don’t
even consider selling until it is to late. I do not want you to
have to sell or to find another place, however if you are running
out of options, then consider this one. If you are not selling
because you feel that you have a lot of equity, the amount of equity
that you truly have is getting lesser by the day.
Why?
Because, it takes an average home buyer a minimum of 30 days to
close their loan. The average home in the United States will sit
on the market for an average of 120 days. Which means, on average,
it will take you nearly 6 months to sell a home and then when you
sell you will not get the full amount. Then you have to pay attorney
fees, realtor fees, title fees, taxes, and deed preparation fees,
not to mention your regular monthly obligations that you have by
having the
house such as insurance, taxes, and your regular payments.
Finally, if you are trying to sell your property, let the bank
know that you have the property on the market to sell. If they know
you are making an honest attempt to sell and get out from under
the debt, while paying them off, they will be more willing to work
with you. Even if you are not able to
receive enough funds to pay the lien off, let the bank know, occasionally
they will work around it.
• Get a Hard Money Loan: Hard money lenders
love to give out loans that have a lot of equity. Here’s why:
because they are secured well. The down side is that these lenders
charge so much for the loan, that it could very well eat the remaining
equity that you have up. Going rates are 10 points for loan
origination (which is 10% of the loan amount – this is charged
right up front and tacked on the back of the loan) plus 10% interest.
Again, you’ve got to think “is this really my best option?”
By adding more debt load to yourself, usually only makes the problems
worsen.
Now, in some states, you are given a Right of Redemption to redeem
the property at the foreclosure sales price plus interest. Some
feel that they will let it foreclose then they will get a
settlement or a large sum of money and redeem it within a year.
Do not kid yourself. I am being honest when I say that this is
the worst strategy that you can take. Here is why:
• In order to exercise your redemption rights, you MUST pay
the entire amount of the money in one lump sum.
• You cannot get a loan for your redemption rights. The bank
will look at your pay history and see that you got foreclosed on,
which will result in failure to redeem the house. However, if you
have the money and decide to redeem, it is best to hire a competent
attorney with Real Estate Law, to conduct the redemption. However,
you must have access to all of the money that you owe to redeem.
You will also be required to pay any other liens on the property
that you may have acquired through 2nd mortgages, judgments, or
mechanics liens. In other words, it is
impossible to go get a loan for the redemption amount.
Do You Feel that Everyone is After You?
During the foreclosure process, the mail will bombard you. It is
a very stressful time. First, your creditors are harassing you to
get the payments current, while you have investors soliciting you
to
sell your house to them; attorneys want you to help you file bankruptcy.
In very few instances is it in your best interest to file bankruptcy.
Click
Here For Bankruptcy Options
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