What is a Foreclosure?

A foreclosure is the legal process by which a property, pledged as collateral for a debt is sold to satisfy the debt.

When a borrower obtains a loan from a lender he agrees to two very important conditions of the loan, and he pledges the property as collateral. 

#1:  He promises to make payments according to the terms and conditions of the loan.

#2:  He pledges his home as collateral. 

If the borrower fails to make a payment, he is in default.

When the lender accelerates the loan or activates the due on sale clause (in other words, 'call the loan due and payable') or

starts the legal proceedings against the borrower, in order to force the sale of the collateral property to satisfy the loan, this is the process know as foreclosure.

Foreclosure is often thought of as an ending event. You hear people say, “he got foreclosed on, or he is in foreclosure."

Foreclosure is not an event, it is a process.

Specific Options Homeowner's Have:

Forbearance – Lenders may let a borrower pay less than the full amount of the mortgage, or skip a few payments, if there is a reasonable plan to bring the loan current.

Reinstatement- A homeowner may be able to make a payment that covers all of the previous late payments, usually at the end of a forbearance period.

Repayment Plan- Lenders may allow a borrower who has fallen behind to make additional payments each month until the past due amount has been paid.

Loan Modification- Lenders will sometimes change the terms of a loan to help a homeowner avoid foreclosure. Options include these:

1: Adding all the missed payments to the loan amount and increasing the monthly payment to cover the larger loan.

2: Giving the homeowner more years to pay off the loan, lowering the interest rate, and/or forgiving part of the loan to lower the monthly payment.

3: Requiring amounts for taxes and insurance to be included with the monthly mortgage payment to avoid large bills in addition to the mortgage.

For help with your loan modification needs contact us at  (786) 375-5725 ext. 305 or click 

Do I Qualify for a Loan Modification? 

Debt Forgiveness- A homeowner could be allowed to sign over the property to the lender in exchange for debt forgiveness, an option that can damage credit. But one that is better than having a credit history of foreclosure.

Short Sale – A short sale is when the lender agrees to accept less for the property than is actually owed on the property. 

Why do a Short Sale?

Declining property values have left many homeowners owing more on their mortgage than the current market value of their property. As an Adjustable Rate Mortgages mature and begin to adjust, coupled with the soaring costs of Property Taxes and Insurance, an alarming number of homeowners have been forced to simply walk away from their properties and enter the foreclosure process. 

 The "Short Sale" is a process by which a Lender approves the sale of a property at current or slightly below market value; when the market value is less than the mortgage amount owed to the Lender, thus avoiding costly foreclosures. This unfortunate circumstance has created considerable opportunities for investors and other buyers to profit from the current conditions found in today’s market.  

Short Sales offer troubled homeowners a way out of their mortgage without the severe negative impact of a foreclosure on their credit. It is also a means for lenders to avoid the costly and lengthy foreclosure process while avoiding bad debt on the lenders financial statement.  

While most Real Estate professionals avoid the complex Short Sale process, the Short Sale Specialists at Top Gun Brokers have completed an extensive twelve month training course at a Real Estate University enabling us to successfully handle all aspects of a Short Sale. This training has given our team the expertise necessary to successfully, and consistently, negotiate Short Sales, yielding substantial discounts to investors while avoiding a foreclosure for the property owner.

Being in this unique position, Top Gun Brokers is well-prepared to work with the client facing foreclosure and meet their needs in a professional and efficient manner.

In the foreclosure process time is critical.  

Don't delay!           

Avoid foreclosure now.

For help with your short sale needs contact us at              (786) 375-5725 ext. 304 or click 

Help Me Short Sale Fast