The loss of job and the health crisis have left many people with no option but to foreclose their property. If you are way behind on your loan payments, then foreclosure may be starting you in the face as well. The bad news is that foreclosing your Phoenix AZ property will create further problems for you by lowering your credit score by 200 to 300 points on average. And, you will also not be able to get another home for five to seven years. Here are some of the other options that people facing foreclosure have:
Deed in Lieu of Foreclosure: This option, if available, is a quick and easy way to settle the issue. It does not require a sale, and may not lower your credit as much as other options can. The way it works is that the lender takes your home in exchange of cancelling your loan. The advantage for banks is that deed in lieu of foreclosure costs them less than a foreclosure. However, you won’t be able to use this option if you have multiple lines on the property
Bankruptcy: This option is even worse than foreclosure, because in most cases, if a property goes into default, the bank forecloses it, thus you will end up with both bankruptcy and foreclosure on the credit record for the next decade! That’s not all; you may still have to make a payment plan for the property.
Short Sale: With this option, you will be able to get a discount on what you owe to the bank, and the bank will accept a cash payment in exchange of releasing their interest in the property. Banks consider this option to avoid foreclosure expenses.
With a third party negotiating with the bank on your behalf, you can use this option to sell your house for cash. While searching for a third party, you should go for an expert Real Estate Investor rather than a realtor, because they are more experienced in short sales, and they will purchase your house, thus increasing the you chances of getting a discount. Also, majority of the realtors look for a buyer after negotiating with the bank, which significantly reduces your chances of getting a discount.
Going for the short sale option not only enables you to avoid foreclosure, but—with the right Real Estate investor—you can also quickly sell your Phoenix AZ house for cash. The key is to find experienced professionals that have handled several transactions of this nature. Therefore, when selecting a real estate investor you should always use the services of a company that is run by licensed professionals and is an accredited member of the Better Business Bureau.
Curt Maly is CEO of Endurable Investments LLC and Endurable Property Solutions. Located in Phoenix AZ and Austin TX. Find out more about how Endurable Property Solutions may be able to assist you when you are selling your property no matter what your unique situation is in Phoenix or Austin. Visit our website at http://www.phoenixshortsalesolutions.com/ We have local Real Estate experts and local Realtors that can assist you with any aspect in selling your property!