The Pre-Foreclosure Decision: Top 10 Questions to Talk Over with Your Attorney

This is a re-post from an article that appeared in a monthly newsletter for the Arizona Area of Realtors earlier this year.  What is so good about this article is that it clearly lists some very specific questions that every home owner should be asking when they are considering the decision on either attempting to modify their current mortgage or simply selling the house for Short Sale.  If these are questions that you are seeking answers too, please call or contact our offices to schedule a consultation.

Re-Posted from AARNEWS . . .

Today, as millions of homeowners struggle with what to do when the value of their property becomes less than the mortgage they owe — particularly those recently unemployed or unable to make their monthly payments — there is a growing need for clear, unbiased consumer protection information on these vital topics.   Homeowners are encouraged to seek the advice of a trusted pre-foreclosure professional to determine if a short sale is in their best interest, be able to distinguish between their own interests and the interests of lenders, buyers, investors, and real estate-related professionals, and how these different interests may influence their decision. RIS Media’s Top 5 in Real Estate Network has developed a list of questions for homeowners to discuss with their attorneys prior to their pre-foreclosure decision:

1. What are my options as a homeowner when my property is in or heading toward default?   What is a better or more likely outcome for me and why?
   • A short sale or a repayment plan?
   • A short sale or a forbearance plan?
   • A short sale or a loan modification?
   • In the case of an FHA loan, a short sale or a partial claim?
   • A short sale or a short sale/assumption agreement?
   • A short sale or a deed-in-lieu of foreclosure?
   • A short sale or a bankruptcy?
2. How do I know if my property and I may be considered for a short sale?
3. How would I initiate the short sale process?
4. Which process has a more adverse effect on my credit rating: short sale, foreclosure, bankruptcy, or deed-in-lieu of foreclosure?
5. What types of hardships would a lender generally consider favorable toward my appeal for short sale consideration?
6. On average, how long does a short sale process take?
7. What are the tax implications of a short sale?
8. If a lender agrees to the short sale option on my property, can the bank still proceed with a foreclosure?
9. Is there a real estate commission paid in a short sale? If so, who pays it?
10. When is a bankruptcy preferable to a short sale or to a foreclosure?

Re-posted to this website by Joe Sloboda of the Burgess Law Firm