Louisville Kentucky Home Insider: 4 Options to Avoid Foreclosure in Louisville KY - PROs & CONs

4 Options to Avoid Foreclosure in Louisville KY - PROs & CONs

 

1. Mortgage Modification - this is were your exsisting loan is adjusted in order to accommodateAvoid Foreclosure your financial abilities

PROS - you keep your home & it reduces your monthly payment for a period of timeyour financial abilities

CONS - you lose some right on your loan & it usually is only temporary

 

2. Short Sale - this is were your home is sold at a reduced price because the value of the home is less than what you owe. This would be your 2nd viable option if your lender would not allow you to do a mortgage modification.

PROS - doesn't damage your credit as bad as a foreclosure & you can eliminate your debt much quicker

 

CONS - you may be held resposbily to pay the difference of the bank's loss on the sale, you no longer have your home and you probably cannot purchase a property for 2-5 years

 

3. Deed-in-Lieu of Foreclosure - your home's deed is given to the bank/lender

PROS - if the deed doesn't cover the full amount of debt owed you can sometimes acquire a "deficiency waiver" for the remaning balance

CONS - not very many lenders will go this route because then it is their responsibility to sell the property

 

4. Forebearance of Payments - you are given a brief respite from your mortgage payments

PROS - you keep your home and there is usually only a minimal drop in your credit score

CONS - only temporary and you may have to give up some rights on the loanAvoid Foreclosure Louisvilke KYWhen in doubt what route is best for you and your family be sure to speak with your trusted attorney, lender and/or Realtor!

Sean S. Williams
Licensed Broker, Realtor
®, ABR®, e-Pro®
1st Time Buyer & Relocation Specialist
502.727.9784 cell
Semonin Realtors
of Louisville, Kentucky
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Comment balloon 2 commentsSean Williams • August 10 2012 10:52AM

Comments

Excellent tips Sean.  I think this should be featured.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 6 years ago

Gabe,

 

I appreciate that...foreclosures/short sales are still an eminent issue facing us and too many home owners still do not know where to turn when they are in trouble. 

Posted by Sean Williams, Your Louisville Realtor (AcklesWilliams of Semonin Realtors) over 6 years ago

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