Foreclosure Help does not necessarily mean that you need to fight or litigate the foreclosure proceeding. Listing or selling the property with an experienced Realtor has the ability to achieve many goals and resolve the foreclosure proceeding.
There is always the absolute right to convey and sell the property at any time prior to the auction sale taking place thereby satisfying the foreclosure proceeding in full. This is the right of redemption. In fact, it will not appear on the credit report as a foreclosure. See https://nycourts.gov/courthelp/Homes/foreclosureJudgments.shtml.
Many professionals, across different disciplines, advocate to litigate, file Orders to Show Cause, Chapter 13 Bankruptcies and even loan modifications.
While, in some cases the results might be beneficial, unfortunately, more often than not they do not achieve any results. In fact, they end up harming rather than helping.
For instance, there are lost expectations, derogatory credit issues, wasted time and money. As the foreclosure litigation lingers on it becomes even more expensive. The homeowner becomes responsible for all the legal fees the foreclosing lender incurs.
Moreover, there is always the possibility, after an auction sale takes place, of the foreclosing creditor requesting a deficiency judgment if the sale does not satisfy the amount owed to the lender. See https://nycourts.gov/courthelp/Homes/foreclosureDeficiency.shtml.
Even worse, if the lender does obtain a money judgment it would, in New York, be good for up to 20 years. Thus, giving the creditor the ability to garnish wages or execute on additional property many years into the future.
It is understandable to try to resolve the foreclosure issues if the delinquency is minimal and even recommended and desirable. But, if the default has extended for a prolonged period of time it is then very difficult to make up those lost payments unless the financial situation has radically changed for the better and more income is now available.
Selling the property resolves all these issues and provides an opportunity to move on without any adverse effects. In the case where the property is worth less than the market value a Short Sale process can be employed. There is no need to outlay any money to any professionals.
A skilled and experienced Realtor can properly handle all aspects of a Short Sale without any cost to the homeowner. The foreclosing lender will absorb all the costs of the sale including closing attorney fees, transfer taxes, title costs, real estate commissions and even relocation costs. It becomes a win – win situation for all involved.
