Many services offered by the real estate market like walkthroughs, rentals, etc. had a hard hit by the virus. As these aren’t the only services that have been suffered, other facilities like foreclosures and short sales have also been adversely affected. In this blog we will tell you How COVID-19 has affected the Foreclosure and Short Sales Market.

The Imprint of Coronavirus on the Foreclosure Market

As everyone is witnessing the catastrophic situation of coronavirus, its effects are also visible in respect with the economy. The loss industries have been facing is immense and would take a while to make up forthe loss. Although, the foreclosure market is going through an uptick, according to the research by FTSE (Financial Times Stock Exchange) and REITs (Real Estate Investment Trusts) say there’s an evident index downfall approximately by 7.7 percent (noted on March 9, 2020).

If this prolongs, it would be difficult for homeowners to keep up with the monthly mortgage payments which will later result in increased foreclosure cases, although it is tough to predict the real estate market. As facts are stated, in some states the mortgage payments have been kept on hold for some time until the pandemic contains.

Coronavirus has Pushed Mortgage Rates Lower

The coronavirus outbreak has made the Federal Reserve to take two emergency rate cuts which apparently brought the bond yields to almost zero. The usual 30-year-fixed-rate-mortgage has been dropped to 3.29% (noted on 5 March). As stated in the records, previously the 30-year-fixed-rate-mortgage was lowest in the year 2012 amid the recession when it hit 3.31%. Additionally, the 15-year-fixed-rate-mortgage also fell by 16 basis point to 2.79% according to Freddie Mac.

The main cause of the mortgage rates to slump is because of the treasury market which has sunken with a lot of margin in the past months. Furthermore, the uncertainty of mortgage rates shall remain in the ditch for a long period.

Corona on Short Sales

When businesses are closed around the globe and many of them can’t go on their jobs, homeowners are forced to sell their houses for a living. Homeowners with no jobs are forced to sell their house for bare minimum profits to perform their regular routine and satiate their daily needs. As a short sale can cost less than the foreclosure to the lender, it always proves to be the most viable way for the lenders to minimize the loss and improve profits. Additionally, a short sale might not damage the credit score of a homeowner.

If you have a hefty amount of mortgage to repay then your only possible option to fulfil the amount is by selling your house to cash buying company.  As there is a rapid increase in short sales it is evident that problems like unresponsive lenders, misplaced documents, erroneous or unrealistic home value assessments, and prolonging processes may make the whole process difficult. In such chaotic situation Elite Properties is one such company which will help you sell your home fast for cash on afair market value. We alsobuy your house as-is, we won’t ask for any lengthy documentation process, which automatically cuts the hassles of a troublesome sale.

You can call us at 7189775462 or visit us at Elite Properties NY to learn more about the home selling process with us. Where everyone around the world is going through the pandemic crisis we’ll help you be at ease with the home selling or short sale process.

What is foreclosure?

In simple terms; Foreclosure is an act of taking ownership of a mortgaged property. The lender or the bank has the right to sell the property for recouping the money and interest respectively.

How does it work?

The Foreclosure process consists of a legal course. The lender takes control of the property by evicting the homeowner, further selling or auctioning the property. Foreclosures generally occur when the borrower (homeowner) fails or stops paying the mortgage payments.

If you are one of them who are seeking help then read the options to consider when facing foreclosure below –

Defend Yourself in Court

Although homeowners are in a melancholy while facing foreclosure, they still have some options accessible to stop foreclosure. The first option is to fight back to the bank. If you think the bank has made an error like sending untimely notices, improper service of notice and loan closing breach of contract, etc. You can defend yourself in the court and countersue the bank for unethically handling the case.

Rent Out the Property

One of the best possible option to stop foreclosure is to rent your property. By renting you are generating a passive income which will possibly cover your monthly mortgage payments. Talk with your lender clearly before moving out. They might charge you with higher interests as you won’t reside there anymore. Also, make sure you offer a mutually feasible rent that would satiate the mortgage payments as well as your personal needs inclusively. Employ your asset and lodge a part of it, it will surely help you in making faster repayments.

Consider Refinancing and Loan Modification

Opting for refinancing will lower your burden of paying heavy installments. If you have ample amount of equity and you’re not much behind the payments then refinancing is the best option. By refinancing you are requesting for a brand new loan with lesser interest rates that help in faster payments.

You can also choose loan modification as per your preference to stop home foreclosure. As similar as it sounds, refinancing it is completely different from it. In loan modification, the lender modifies the prevailing mortgage so that the payments become more affordable. In most cases, the time span is also altered and made feasible.

Consider a Short Sale

Another option to avoid foreclosure is opting for a short sale. What is short sale? A short sale is when a homeowner sells its property for a lesser amount when he or she is on the verge of being financially distressed.

Here, the buyer is a third party; all the profits from the sale go to the bank (lender). If there is still some outstanding debt on the homeowner, the lender will forgive the difference or will file for a deficiency judgment against the homeowner. If the lender files the deficiency judgment then the homeowner is liable to pay the remaining amount within the given time span. Although, your credit score is affected for some years during a short sale, it is better than ending up with a foreclosed property.

If you are considering a short sale then you have nothing to worry. You can contact us here at Elite Properties NY and we will take care of the rest of the proceedings.  

Selling a Foreclosed Property

There are multiple ways to stop foreclosure some are effective some are not, it relies on the situation you are in. If you sight foreclosure nearing, you should act fast and sell your home to cash buying companies. Companies like ‘Elite Properties’ buy houses within 3 days in all cash-offer. Once you sell the house to us you receive hard cash, which is always a great deal. Selling home to cash buying companies crafts the deal on the current value of the property. They provide you with certainty concerning the costs and timescale. Furthermore, you can pay your outstanding debt with the help of that money and start afresh.

If you are suffering from any other real estate crisis and need assistance we will be happy to help you in your tough times. Get in touch with us, rest assured we’ll provide you with the best possible solutions.

We would also like to enlighten you further on the ways to buy a foreclosed property as it comes in multiple forms like short sales or pre-foreclosures, we hope it helps you get the right property.

Buying Foreclosed Property Through Auctions

It is essential for you to understand that foreclosed properties are sold as-is. If the house has shabby exteriors of worn-out floors, the property will be auctioned anyway with prevailing faults.

The home buying process is much simpler in auctions where the highest bidder wins even if it is for a small amount this particular type of bidding is known as an absolute bid. There is another way of bidding also called as the reserve bid in which the property has to be auctioned for the given price or else the lender gets the title. The purpose of selling foreclosed properties is to achieve the highest price on them.

If you have made up your mind to buy a foreclosed home through an auction then for obvious reasons, you won’t be able to get your hands on a walkthrough. Paying for an unevaluated property could be a bane for your pocket as there are clear chances you’ll end up paying a lot more than anticipated due to additional repairs that come later in the play. As soon as you buy the house, you are designated as the rightful homeowner of the property where eventually you stand liable for all the necessary home improvements that occur post purchasing.

Hence, even if you have bought the property for a cheaper cost through traditional way, repairs can make your pockets bleed money. Do your thorough research and talk with brokers who are willing to work with you and try not to go into the process blindly.

Buying Foreclosed Property Through Banks

There are mainly two types of foreclosed homes which are –

1. REO(Real Estate Owned) Properties
2. Bank Owned Properties

Both of the above foreclosed properties are under the ownership of the lender which is mostly the bank, the only way of differentiation is the stage of the foreclosure process. Before you proceed with the buying of the property at auctions or through banks make sure you get a mortgage.

Whereas buying a foreclosed property through cash could be the soundest option it may be not so feasible for many homebuyers. If you have thoughts on buying a foreclosed property with the help of a loan then it is advisable to prequalify and get a preapproval letter before you start with the research and proceed with the home buying process. The latest preapproval letter from the lender or bank will aid in providing detail of how much money you can have in the form of a loan, based on the lender’s evaluation of your credit score or income.

Buying Foreclosed Property Through Brokers

The professionals know the best, real estate agents are highly experienced in their stream they will assess your property inclusive of factors like the current condition of the house, locality, and neighborhood. If you are a first-time foreclosure buyer we advise you to get in touch with a broker who knows the tricks of the trade as far as REOs come into play. Hiring a real estate agent would surprisingly cut down your legwork and time and steer to your desired property.

Although it is the most advised suggestion for new home buyers, we would also like to inform that buying a distressed property through agents could be rash on the budget as you will have to pay the commission costs to him or her which makes it less fair deal.

Make Cash Offer On House In Foreclosure

There are companies that buy houses for cash in New York and sell it to you post flipping. ‘Elite Properties’ is one such company that help buyers and provide necessary services to those who are facing foreclosure, they will also help you in stopping foreclosure. These companies buy the foreclosed properties and renovate it by providing necessary amenities to the future consumer. They do the primary improvements like sewage repairs and HVAC repairs including some renovation of tiles or ceilings. Furthermore, these remodeled properties are listed out in the market for sale at modest prices for homebuyers that wish to buy foreclosed properties at reasonable prices.

Companies that buy house for cash are saviors if you are running out of time, but have your eyes on the dream property. By paying cash for foreclosure properties, you can buy your dream house without worrying about the renovation, as all you get is brand new properties with no flaws. They will propose the final deal and give you a moving date according to your specifications. All you have to do is finalize the cash offer and get things done. You require no paperwork or any kind of legalizations at all.

Last Words Before Purchasing A Foreclosed Property

Given above were the four ways of buying foreclosed properties. After reading the blog above, you will be able to make better decisions for yourself that will take you closer to buying your dream home even if it is a distressed property. If you are residing in New York City and wish to buy and sell properties then get in touch with ‘Elite Properties’ they will provide you with the exact solutions for all your real estate crisis and guide you through the right path.

This is why, the thought of losing home can be draining, not just financially, but, emotionally as well. If you’re facing a daunting situation where you’re not able to pay the mortgage payment, or you’re already in arrears then, it’s time for you to take the complete charge and identify reliable ways to get out the labyrinth. Otherwise, it may lead to repossession of your home.

What Is Repossession?

Repossession is the stage just before foreclosure. Foreclosure occurs when you fail to pay three consecutive mortgage installments whereas, the process of repossession starts when you miss your first monthly installment. Your mortgage lender would ask you the reason but, allow you to pay the pending installment the next time. In real estate language, this stage is termed as ‘arrears’.

However, if you still lose out the due installment, you won’t be provided with a grace period. The lender will issue a warning letter against you declaring that you can be evicted from the house at any time and the lender would have the right to sell your house. To avoid such a scenario, you’ll have to repay the outstanding mortgage debts immediately.  If you cross this stage without taking suitable action, your house falls in the foreclosure category directly.

Here are the best ways to avoid repossession of your home…

Evaluate Your Budget

Understanding the bifurcation of expenditures and income holds extreme importance. Many families follow specific guidelines for their monthly expenses considering the single revenue source.

For example-

• Housing – 35% (rent, mortgage, taxes, repairs, insurance, and utilities)
• Transportation – 20% (gas, oil, repairs, insurance, parking, public transportation)
• Debt – 15% (credit card, personal loan, student loan and other debt payments)
• Other Expenses – 20% (groceries, medical bills, prescriptions, clothing, and personal items)
• Savings and Investments – 10% (monthly contributions to retirement, investment portfolios or savings account)

Rendered percentage above are subject to change or are tentative as the needs and family size vary from house to house.

Mortgage Payment Protection

If your emergency funds are not apt to fulfill the payment then, the next step you can take is checking whether you’re entitled to any benefits such as mortgage insurance. Mortgage Payment Protection Insurance (MPPI) is designed to cover the mortgage payments in events such as mishap, sickness or redundancy which are some of the whys and wherefores which eventually halts your income source.

Communicate With Mortgage Lenders

The moment you fail to repay your mortgage installment you ultimately fall into arrears. In such case, the lender will contact you through legal and private mediums that are calls and letters. If you miss subsequent repayment demands, the lender can rightfully start property repossession proceedings against you. It is advised to respond to the calls and repossession notices regularly to evade such circumstances.

As a precautionary measure, you can ask your lender to modify the term or negotiate the mortgage installments to make the repayment more affordable. Also, do not pay any extra fees or monthly charges if you have already made an agreement of repaying arrears.

Rent Your Home

If you have an alternative place than your home to stay, you could move out of your home and rent it to tenants. Consider having a conversation with your lender prior migrating out of the house as they may charge a higher interest rate on the mortgage if you no longer reside there. Make sure the amount you charge as rent to the tenants, should cover the mortgage payment inclusive of the extra costs of being the landlord.

Renting your home or a lodging a part of it would help in increasing your income which aids you in faster repayment of the mortgage.

Sell Your House

Selling property in the market might not assure inevitability, but it might be the only way to stop repossession. If you are not able to keep up with the repayments or due to some financial crisis you should act quickly and sell your house.

There are several companies that make a proposal based on the current value of the property. Such companies have the cash and infrastructure organized to expedite a purchase, giving you certainty concerning price and timescale, ultimately providing you a higher value of the property. Companies like ‘Elite Properties’ buy houses within 3 days in all cash offer.

‘Elite Properties’ is one of the companies that offer you, we buy houses for cash service in New York in your crucial time.

Final Word

Mentioned above are the tips to avoid repossession of your home that would surely help in your crucial times. Furthermore, you can contact reputed real estate companies in NY like ‘Elite Properties’ for smooth sailing of circumventing the repossession of your home.

Being one of the renowned facilitators of real-estate services in NYC, they assist their customers in every step. Therefore, keep patience, connect with Elite Properties.

Go through the following key advantages of buying foreclosed home and then make a decision by yourself…

1. Great Investment Opportunity

A foreclosed home is a great investment opportunity for buyers because it’s available at cheaper rates than the actual market value. How’s that possible? It’s quite natural to have this doubt. So, let us explain to you some details of the foreclosure process. Foreclosure occurs when a homeowner fails to indemnify the mortgage payments, and the bank/lender puts the property for sale for compensating the financial losses. This is why they sell the property at low rates just to get the remaining amount out of it. Further, your monthly mortgage payment would also be less.

2. Move-in Ready House

Getting a move-in ready house is a compelling reason to buy a foreclosed house. As discussed earlier, nowadays, the lenders/banks do all the necessary repairs in advance. Why? In today’s world, everybody seems to judge a book by its cover! One may not pay even the marginal rate if the home is in a distressed condition. Therefore, the lender makes all the required repairs beforehand. This clearly depicts that you don’t need to invest money as well as your precious time to get things done. You can shift to your home as soon as you complete the legalities.

3.Foreclosed House in New York

We have good news for foreclosed property buyers which could be a bad one for the foreclosed property sellers. According to a recent real estate survey, nearly 40% properties in New York City are in foreclosure. To be honest, this is quite a big figure. This interprets that foreclosed home buyers have a plethora of good properties to choose from. One can bargain and purchase a foreclosed house which suits their needs.

4. Better Neighborhoods

Foreclosed homes can be a boon if you have always dreamt of living in a posh site in NY. Let’s say there’s a home located in the central area of NY with a net worth of $500,000. If that home falls into foreclosure, its prices could lessen up to $250,000. You can encash such opportunities and be a proud homeowner in NY. In a nutshell, you can easily afford foreclosed properties in elite localities which otherwise could be costly and even beyond your budget.

5. A Step towards Bright Future

Even if you don’t want to shift your house, investing in a real estate property could be fruitful. You can buy a foreclosed home in a good locality and give it on rent. This way, you’ll be able to make a passive income and have a property of your own. This is perhaps the best way to gain financial security.

How to Proceed?

First and foremost, decide on the type of foreclosed property you want. After that, make a note of all the amenities and features you seek in a home. Once you are clear about your home goal, contact a reputed real estate agency in NY for exploring your foreclosed property buying options. They’ll not only help you throughout the foreclosed property buying transition but also, rationalize all the paperwork and legalities.

Conclusion

Do you seek a property in NY with a good neighborhood? At low prices? Keeping in mind all the above-mentioned benefits, a foreclosed home is the ultimate answer! Bear in mind that – Two heads are better than one. Therefore, contact a trustworthy real estate company in NY such as ‘Elite Properties’ to get the most out of the foreclosed home deal.

Pre-Foreclosure Basics

Most people get confused between ‘foreclosure’ and ‘pre-foreclosure’. Well, there’s a thin line between the two. Foreclosure means a legal procedure that occurs when a borrower fails to repay the loan amount to the lender. The lender either sells the home in a property auction or takes the complete possession of it. Whereas, a pre-foreclosure ensue when a homeowner falls behind on mortgage payments. Generally, the pre-foreclosure period starts when the homeowner misses three consecutive payments and the lender issues a default notice to the home buyer asking to pay the debt. During this grace period, the property owner has two options, either he/she has to pay the debt within a specified time frame or sell the property. Therefore, pre-foreclosure can be considered as the initial stage that might lead to foreclosure.

Is it worth buying a Home in Pre-Foreclosure?

There’s a common misconception between most Americans that pre-foreclosure properties are only available in distressed condition and in an undesired neighborhood. Well, pre-foreclosure has nothing to do with the locality and its condition. For instance, a businessman invests in a real estate property located in a posh area of NY and unfortunately suffers a huge loss in business that leads to the failure of the mortgage payment. Regardless of the fact that he’s a businessman the property is bound to enter the pre-foreclosure phase. To be honest, financial setbacks can happen to anyone. Homeowners who go through such hardships usually prefer to sell their properties even at discounted rates. Otherwise, the property will completely slip off their hands and fall prey to the foreclosure process. So, you can actually get a good deal by investing in pre-foreclosed property.

Benefits of Buying a Pre-Foreclosure Property

Here are the major benefits of buying a pre-foreclosure property.

• Less Competition: Competition is less since most properties are not listed.
• Quick Buying Process: Simple and quick home buying process as most homeowners are desperate to sell the property as early as possible to avoid foreclosure.
• Great Deals: You can negotiate and buy the property for less than its current market rate.
• Better Neighborhood: Chances of getting property in a better neighborhood.

How to Buy a Pre-Foreclosure Home?

Here we’ll discuss how to buy a pre-foreclosed property.

• Find Pre-Foreclosure Leads

First and foremost you need to find legitimate pre-foreclosure leads. It might be a daunting task as most pre-foreclosure properties are not listed. So, roll up your sleeves and start by preparing a list of areas where you want to have a home. Once it’s done, you can make an analysis by reviewing public records or local newspapers and then visit those areas personally to find out pre-foreclosed homes. This will give you a fair chance to check on the property as well as the neighborhood. However, if you want to simplify this process, we suggest you hire a ‘we buy houses for cash’ company.

• Research the Neighborhoods

Shifting to a new home is a long-term commitment. Therefore, a good neighborhood is equally important as the home you want to move in is. So, do research about the neighborhood without fail. Look out for nearby schools, hospitals, banks, transportation facilities to avoid problems in the future. In addition to this, you should also closely inspect the condition of surrounding homes and buildings.

• Find an Authentic Lender for Receiving a Pre-approval Letter

Finding an authentic lender is one of the trickiest aspects of buying pre-foreclosed homes. What happens is, you may want to buy a hot property worth $500,000 but, the lender may approve only $300,000. To avoid such unfortunate events, getting a pre-approval letter from the lender is necessary. A pre-approval letter is basically a legal document that helps you understand your maximum borrowing amount. The precise amount is calculated on the basis of your gross monthly income and debt payments. Therefore, you can actually decide your budget only after getting a pre-approval letter from the lender. Apart from that, it’ll also depict that you are qualified for buying the property.

• Important Documents You’ll Need

You must possess the following documents in order to get the pre-approval letter in a hassle-free way.

• Driving license
• Credit report
• Two pay stubs that reflect year to date earnings
• Two years of tax return report
• Recent bank statements

Sometimes, you might need to submit some other official documents. So, it’s always better to consult a real estate agent in NY to understand everything in details.

• Decide on a Property

Of all the pre-foreclosed homes that you’ve seen, you must narrow down your search to a few homes. Visit each of them personally and do an inspection. You can also hire a trustworthy home inspection officer to ensure a right decision. This procedure will hardly take a couple of hours. Monitor everything minutely including the electrical system and plumbing. Then, choose the one that fits your budget and have the desired amenities.

• Make an Offer

Making an offer is easy once you have a preapproval letter in your hand. You’ll know your financing options, and thus, you can outline the budget accordingly. Contact your real estate agent in New York and discuss how much you are willing to pay for the pre-foreclosed property. Your real estate agent will take your proposal to the seller. If your seller accepts your offer, then you’ll need to make a purchase contract.

• Financing Commitment

Financing commitment is a crucial step. To get the specified loan amount you’ll have to send the purchase contract to the lender. The lender will examine the contract and ask you for the following set of documents before issuing a commitment.

• Mortgage application
• Property details
• A complete list of assets and liabilities
• Property appraisal
• Application fee (May differ from individual to individual)

You can close the deal smoothly by following the above legalities.

Bottom Line

Buying a pre-foreclosure property is not just a safe financial investment but also an opportunity to have homeownership in New York. Be patient and refer the above guidelines to understand the technicalities of buying a pre-foreclosed home. Further, you can also contact ‘Elite Properties’, which is one of the most trustworthy real estate companies in NY for more experienced advice.

We have been helping people to sell and buy houses in NYC for the past nine years. Till today, whenever a customer approaches us with the same question, we make sure he/she leaves with the exact answer they were looking for. Even though both foreclosure and short sale come under the category “the current real estate trends of New York”, buying one wouldn’t be as easy as it seems. Only go for these if you have got ample time and a strong gut.

“There’s really no cut-and-dry answer; it depends on the buyer and what the buyer’s priorities are.” If you are running low on budget or trying to find the best possible deals for buying homes in NY, opting for foreclosed and short sale homes can be the best option. As there are Yin and Yang for every living and non-living thing in this world, both foreclosure and short sales also have their pros and cons. You might be wondering whether this is again a Foreclosure vs. Short sales article. Our one-word answer to the question is “Yes”. This is indeed a Short sale vs. Foreclosure article but with a “twist”.

Buying On a Budget

Owning a home has always been an all-American dream for most of us. Matt Hamilton approached us with the same goal in his mind. Since he has been living as a tenant since 2010, buying a home in NYC was pretty much a dream come true for him. He recently switched his job and needed a neighborhood to accommodate his nuclear family comfortably. We gave him two options; a foreclosed home and a house listed under short sale as he was on a budget. We helped him to shortlist the list down to two houses and made sure his decision was respected and full filled.

A full-fledged home within your budget is the appealing factor of both foreclosure and short sales houses. If the situations are in favor of the buyer, he/she can acquire the desired home for almost as low as 37% of the real listed price of the property.

It’s a Risk Worth Taking

There’s always risk involved when buying a short sale or foreclosed home. A foreclosed home might be closed down by the bank (foreclosure by a bank) due to the default in mortgage payments. Such houses might be closed down for weeks or months and the repairs conducted will be near to nil. Considering this factor, short sales are much better as the present owners will be living there before you move in and all the repairs and renovations done will reflect in the final price of the house. The biggest challenge is that you are buying a property in NY with just looking at the pictures as taking a walk through or having the property inspection by a professional is not allowed in both of these scenarios.

Foreclosure vs. Short Sale

Most of you might have come across the flyers which say “foreclosure homes for sale and foreclosure auctions.” Well, before taking these lightly know that there might be a fortune hidden behind. When it’s foreclosure against short sales, everyone will have their own opinions. Rachel McGraw, who bought a short sale property in NYC about a year ago says she’s a big fan of short sale houses. “The deal was great, and with the help of a professional short sale negotiator from Elite Properties got me a fortune”, says Rachel. We helped grab her house for a dot $225,000 while the home was listed for a $50,000 extra.

1. The time it takes to complete a foreclosure deal is shorter than a short sale

Foreclosure takes less time in completing the paperwork and handing the key over to the buyer. A majority of the buyers writing offers for foreclosure homes will receive a response within 48 hours. If it’s a bank foreclosure property, the whole tiresome process can be done in a period as short as 30 days.

In buying a foreclosure, you will be dealing with a motivated and unemotional business minded seller whose primary goal is to sell property quick for all cash. When it comes to buying a short sale house you might be dealing with an owner who has mixed emotions about the property and might, in turn, slow the whole process down.

2. Follow your Gut When buying a foreclosure in New York

Well, if you get a gut feeling that the price offered for a property is the best price you can ever get, then just go for it. Buying a penthouse apartment in NYC is a lot less scary with the ‘as is ‘factor in foreclosure. The city itself offers a decent standard of living for almost every type of houses and condos.

With a short sales, even though you can get a house at its best condition, it isn’t sure that you can always land with the perfect deal. The location matter a lot and the house must be in a buyer’s market. In a buyer’s market, the seller might be willing to consider all the terms and conditions of the buyer for a successful confirmation of the property deal.

3. Banks favor Short Sale rather than Foreclosure

A foreclosed property has always been a burden for both the banks and lenders. That is the main reason why banks don’t entertain property foreclosure. Listing your property under short sales will benefit the seller as well as the bank. Working with a knowledgeable buyer’s agent will increase your chances of short sale negotiation and land a great deal with the bank.

Experience Does Matter

Hiring a foreclosure expert in NY to deal with all the troublesome situations that you might face in buying a property would be a great idea. He/ she will have the knowledge and experience needed to cover all the documents and paperwork relating to purchasing a foreclosure property.

The same goes for short sales too. An experienced short sale specialist might help you to land with the best deals for your desired property. There are even real estate agents in NY who offers short sale packages in New York to attract more and more customers in buying short sale properties. Hire a professional real estate agent who provides foreclosure services and short sale services so that you’ll have access to their enormous short sale and foreclosure listings in NYC.

Owning and living in the same home is one among the American dreams. But, the recent studies have shown that it has created a sense of fear and frustration as they keep on trying to meet the ends and avoiding the foreclosure nightmare. If you think you are the only one who is in this situation, then you are wrong. People from all income levels are suffering from the clutches of homes in foreclosure even as we speak. And people feel more helpless when they try to get the help of internet to understand the foreclosure process. Since many real estate terms and jargons are involved, it is indeed difficult for an ordinary man to grasp and understand every crisp detail.

Well, numerous non-profit based firms provide foreclosure assistance for all. Through this article, we’ll try to lend you a few helpful tips to make you understand foreclosure isn’t the ‘end of times.’

Here’s what you need to follow when facing foreclosure…

1. Go Through the State Laws

You must know that every state has its own foreclosure laws. So, before jumping to conclusions, it would be wise to go through the State’s Laws on foreclosure. Depending upon the State, the home foreclosure can be either judicial or non-judicial.

As for a non-judicial foreclosure, there are no courts involved. The lender doesn’t have to go through the courts to file the foreclosure. He can send you a ‘notice of default’ (which is a notice mentioning the failure of payments) along with a ‘notice of sale.’

When it’s judicial foreclosure things get more complicated. You’ll be sent a complaint along with a summons to the court. It means that the lender has already filed a lawsuit against you. You shouldn’t miss the deadline for the response at any cost as the court will pass the law in favor of your lender and allow the foreclosure to proceed.

2. Foreclosure Doesn’t Happen Overnight

Foreclosure doesn’t happen overnight. And this is a fact. Foreclosure only begins when you miss a couple of months of payments. Usually, the lender will send you a notice of default when you miss four or five months of payment. They’ll also specify an amount that you need to pay for to cover up for the defaulted loan and a deadline along with it. Once you failed to meet the requirements, you can expect foreclosure process to begin any time.

So, you’ll have a minimum of four to five months (depends on the lender) after the last payment to cover up your default payments

3. Judicial Foreclosure a Boon?

Once you understand you are under either judicial or non-judicial foreclosure, the first thing to do is not to panic. Judicial foreclosure usually comes under foreclosure by bank. But, let us make one thing clear, the latter situation might be less advantageous as these happen way quicker. However, you’ll be the legal owner of the foreclosed property has been terminated by a new sale deal.

In judicial foreclosures, the court proceedings can take as much as a year. It will aid you in finding a new home. But, still, if you fail to find an alternative home within the deadline of foreclosure, you’d be welcomed with an eviction.

4. Call Your Lender

A lot can happen over a call. Don’t back yourself from calling your lender and asking for a relaxation. Explain your situation, try reasoning with him for an extended mortgage pay off time. Hopefully, he/she might agree. This might even help to delay foreclosure. Well, it’s worth a shot right!

5. Chapter 13’ Your Last Resort

Chapter 13 can be your last resort. A lawyer can help you file a Chapter 13 bankruptcy, which will in turn force the lender to negotiate a payment plan. But, use this as a last resort only. Being stated as bankrupt can hurt your credit score and filed suit against a lender can drag you into much more deeper troubles. You’ll also have an option to put your home on short sales.

Conclusion

With a little bit of preparation, you can survive the whole foreclosure process. You’ll have enough time to prepare for it, and you only need to vacate the property till there’s a new buyer. So, save up some money and look for a better and affordable rental. As for lenders, to find a buyer for a property under foreclosure is pretty tricky. There are many agencies and skilled real estate agents to ease up the pressure and help you get a new buyer. You can contact real estate professionals like ‘Elite Properties’ for more experienced advice and foreclosure help.