Are you getting to the point with your home that you can no longer afford your mortgage? When this happens, foreclosure is often an option that you have. However, when you think of foreclosure, chances are you feel shame and embarrassment that your life has come to that. There is a lot of negativity that is associated with a foreclosure, and it is something that most people try to avoid. However, there is a lot of misinformation about foreclosure in New York and there are several myths circulating about foreclosures which you may have been led to believe. So before you think that you have no other option than to go through a foreclosure in New York, just be certain that you have the whole story.
1) Did You Know…The Bank Takes All Your Stuff
If the home is foreclosed on and the owner does not voluntarily move out of the home, or if they do move out and leave items in the home, this becomes the property of the bank. While this may not be surprising, the odd thing is what they do with those items that are left in the home.
The bank will gain access and all the items that are left in the home are put in the front yard of the home. Then, they allow all your neighbors to comb through these items and buy them from the bank. This is just one way that the bank is trying to make extra money off of your home they now have in their possession. And remember, that anything left behind is fair game to be sold to others. Those secret romance novels that you like to read are going to be seen by everyone. The clothing, including lingerie that you left behind is being sold. The bank allows this to go on for 24 hours, then what doesn’t sell is put back into the house and companies later are given the chance to bid on who gets the job to clean this out.
2) Believe It or Not…the Lender Doesn’t Want to Foreclose
Banks are in the business of making money, and when it comes to your mortgage, they are making money off of you based on the interest that you are paying each month. In fact, like you, the bank would prefer if it never had to foreclose on a home – that’s not the business they are in. This is the reason that so many professionals suggest that homeowners in this situation first talk with their lender before it’s too late and foreclosure becomes your last resprt. Many lenders are willing to work with you and negotiate a lower payment, allow you to skip a payment or something similar since they know in the long run they make more money from the mortgage payments that you make and not have to deal with the foreclosure process.
What is interesting is that some banks are paying the homeowners to leave the home when they know that foreclosure cannot be avoided. Why in the world would they pay the homeowners to leave the home when they haven’t made a mortgage payment to the bank? The bank does this as an incentive to leave the home in good shape and leave without a lengthy battle to foreclose on the home. Too many times when a person faces foreclosure they remove fixtures or destroy the home. They may remove appliances, tear up for the floors, remove lighting fixtures and so forth. The reason being is that they are made that they are being foreclosed on and they don’t want to make anything easier on the bank. In these types of situations, the bank may give the homeowner about 1% of the value of the home to just leave and leave it clean and in good shape so they can sell this and get back some of the money they loaned.
With this being said, lenders may still opt to foreclose on your New York home, especially if it appears that you are not going to be able to repay the money that you owe them.
3) Those Going through Foreclosures are Often Sick
The health of those who are going through foreclosure is also put through the wringer. Those who are dealing with foreclosure are more likely to be physically sick. Information through some of the hardest-hit states in the US when it comes to foreclosure also saw an increase in the number of emergency room visits that were happening. Many people were being admitted for depression, anxiety, stomach issues, hypertension, and other problems. In addition, this increases the chances of suicide!
This is one of those facts that most people do not even consider when they know that they are facing foreclosure. However, it makes perfect sense when you consider just how damaging a foreclosure is to your way of life! To avoid these potential negative health effects, those facing foreclosure in New York should be proactive with how they deal with the situation in order to resolve it quickly.
4) Foreclosures in New York Do Not Wipe Out All the Debt
When a home is foreclosed on, most people think that all the debt associated with that home is wiped out. But, that is not always the case. When a person does face a foreclosure, this is going to wipe out the original debt of the mortgage. When it comes to IRS debt, HELOCs and second mortgages, many times a homeowner is still responsible for this debt. There are situations in which the foreclosure proceeds pay these off if the value of the home has risen dramatically.
However, in most cases, the property may have decreased in value or the interest and fees from non-payment of the mortgage have caused the debt balance to balloon, which means there will be debt left over after the sale. When there is outstanding debt, the homeowner may still legally be on the line for this debt and they may be court-ordered to pay this debt depending on the situation.
For those who are considering foreclosure in New York because they are falling behind on their payments, there are other options. Consider contacting a real estate investor to help navigate the difficult situation. At Leave The Key Homebuyers, we will help you avoid foreclosure in New York and will discuss the different options you have in your situation. Whether it be negotiating with the bank on your behalf for a short sale or buying your house quickly for cash before your balance balloons, you will find that we can help you to avoid foreclosure and will help get you out of a home that you can no longer afford.
So What Options Do You Have to Avoid Foreclosure in New York?
Work with an Investor on a Short Sale
One of the best ways that you can avoid foreclosure is to perform a short sale. A short sale is when you (or someone like us, on your behalf) negotiates with the bank and gets them to agree to sell the home and accept less money than you owe. Basically, the bank will often take whatever they can get for the home and you’ll be able to avoid a foreclosure on your record. A lender may be be interested in a short sale since they are going to be able to avoid the lenghtly process of foreclosure in New York and dealing with selling the property.
However, getting this foreclosure stopped is not meant to save your home for you. It is simply a way to avoid the effects that the foreclosure will have on your credit rating. A real estate investor can work with you and on your behalf with the lender to stop a foreclosure. Investors like us have experience negotiating with these lenders and know how to get the short sales approved and your foreclosure stopped. Since the short sale is based on you willingly leaving the home, if this is the path you are considering going down, you should start planning for what’s next – where will you move next, how will you afford it, etc. By opting for a short sale, you preserve your credit and it will make it easire to find a rental apartment or purcase a new house in the future.