The Strategic Foreclosure

The Strategic Foreclosure
If you have money in the bank but can barely make your payments, maybe you are considering negotiating a loan modification with your lender. Unfortunately, these are taking forever to get approved and the likelihood of them lowering the principal balance is very low. So what can people do that are $50,000, $100,000 or more underwater on their homes, but that could continue to scrape by and make their payments?
We're not attorneys, but we speak from experience, having handled hundreds of short sale transactions in the past three years. We can't advise you to use this approach, but many of our clients have used a certain strategy with their upside down properties, especially when they are wanting to stay in their homes. We are located in Portland, Oregon and have helped people all over the country with their short sales. It is critical that you and your Realtor know the state laws relating to foreclosure. In Oregon (and in many other states), this is a non-deficiency state, so the 1st mortgage lender has no recourse after the foreclosure or short sale. Consequently, we can use this to negotiate a full release of debt with your lender, so you can sell your home for less than is owed and avoid a foreclosure on your record. The reality is that this process takes time, and auctions are normally postponed when there is an offer on the home. Some homeowners we have worked with haven't made a payment in 2 years while we have continued to negotiate with the lender.
The bottom line is if you are in trouble financially and anticipate not being able to make your payments comfortably, immediately make contact with Realtors like us who know the in's and out's of the foreclosure and short sale process. We can come up with creative solutions that will ultimately give you favorable results and make the best out of a tough situation.

Written by Nick Shivers