Foreclosure assistance and short sale information for Destin and the Emerald Coast
How to avoid foreclosure in Destin South Walton and Emerald Coast. What most people that are behind in payment on their mortgage don’t realize is that there is a solution instead of foreclosure. It is extremely important to know what your options are before giving up and letting the bank repo your home. This is a delicate, emotional and difficult time. I have been trained as a Certified Distressed Property Expert. My goal is to be able to shed some light on an otherwise gloomy time. The good news is that there are possibilities that you can save your house and not even have to move. I will outline some basics below. There are many options and they depend on how far you are on the pre-foreclosure process. What your hardship is and whether or not you want to keep your home or move on.
How to Avoid foreclosure and keep your home
Debt forgiveness: This is rare but in certain circumstances you can talk with your bank. They may allow you to become current on your mortgage by just starting to pay your normal monthly payments as agreed. They will then forgive what is past due
Repayment Plan: You may be able to have your lender spread out missed payments until you are caught up. For example, if your monthly payment is $2,000 per month and you are 2 months past due. The bank may add $200 to your payments for 20 months. You will be current and out of trouble.
Forbearance: This is an agreement between the lender and the borrower to delay foreclosure. You will need to work out a plan with your lender to allow you to catch up on payment to avoid foreclosure.
Re-finance: If you have equity in your home your lender may allow missed payment to be added to the back end of the loan and stop or avoid the foreclosure process.
If you have tried these options and have not been successful we may be able to help you with a specific plan that caters to you. You can call Danny Margagliano at 850-830-4747 to talk about options with no strings attached.
Other ways how to avoid foreclosure
Sell your home: If you are not under water or upside down on your home then interview Realtor and have your home listed for sale . Click here to get a free home valuation to see if what your home is worth is more than you owe.
Consider a Short Sale: If your home is worth less than what you owe and you have a valid hardship you may be eligible to short sale your home. This process does take work on your side but the consequences are typically much less less foreclosure.
Deed-in-lieu-of Foreclosure: This is when you just sign the deed of the property back to the bank or lender. This does effect your credit the same as foreclosure and the lender may give a deficiency judgment on the difference owed. Typically it is much better to try to short sell first before doing a deed-in-lieu- of foreclosure.
How the Short Sale Process Works
Getting qualified for a Short Sale: It is important that your real estate agent makes sure that you are qualified to short sale your home. The main thing is you must have a hardship. A hardship can be one of the following but there are some exceptions: Loss of employment, income reduction, business failure, damage to property, death of spouse or wage earner, death of non-wage earner, severe illness, inheritance, divorce, relocation, military service and payment increase or mortgage adjustment.
Once you are qualified to short sale your home it can be listed. As your Realtor I will put your financial information with your hardship letter and submit it to the bank. Then market and sell your home. Next, have the bank forgive the difference between the sale price and what you owe. You can make a dignified exit from your home and not destroy you credit. Obviously your credit will be damaged but not anywhere close to foreclosing on your home. There are even times when you may qualify for a financial credit when you short sale to help you move.
To get that facts for how to avoid foreclosure in Destin, South Walton and the Emerald Coast call Danny Margagliano at 850-830-4747. You can also email at our contact page. to set a confidential appointment to go over your options.