"Your Real Estate Advisor"

Foreclosure Prevention

Foreclosure Prevention 

Consequences of a Foreclosure

  • You will be ineligible for a government-insured loan for 5 to 7 years (only 3 to 4 years in a short sale).
  • You always must disclose that you had a foreclosure on any mortgage application and many job applications. You will also be required to disclose a deed in lieu of foreclosure and a short sale. A short sale gives you more control of the outcome and is seen as less damaging.
  • The foreclosure will significantly lower your credit score.
  • Many employers run credit checks on job applicants.
  • A foreclosure can cost your current job or prevent you from getting hired.
  • Many jobs and professions require a security clearance. A foreclosure can jeopardize the security clearance.
  • You may face a potential deficiency judgment. If you are foreclosed the deficiency judgment will be larger than if you complete a short sale. And in a properly negotiated short sale, the mortgage lender will waive their right to pursue a deficiency judgment against you.
  • There can be a potential tax liability as the unrecovered debt is considered taxable income. In a foreclosure, it is not just the mortgage amount but also the court fees, attorney fees, house maintenance fees, etc. that will accumulate against you.

Please contact me for a free consultation appointment at (850) 616-6377 or [email protected]

Foreclosure Prevention Steps

  1. Call your lender immediately. Ask for the loss mitigation department.  The sooner you make this call the better, don't hesitate.  Possible solutions are a refinance, loan modification, repayment plan, or forbearance plan.
  2. If you have sufficient equity to pay off the loan then take advantage of today's seller's market.  Despite the increased interest rates, there is still a shortage of homes for sale.  So, take advantage of the Pensacola market today.  If you have more than one mortgage or other liens against the home (even an IRS lien) a sale can still be accomplished. Be proactive!!
  3. If you are unable to sell your property at a high enough price to pay off your loan plus expenses you will end up with a shortage of funds. You can still sell your home in what the real estate industry calls a "short sale" (meaning a shortage of funds).  This is a complicated process with several key components.  The first is your willingness to work closely and cooperatively with your real estate agent.  Secondly, your real estate agent's understanding of the short sale process.  Finally, your agent's ability to thoroughly understand the real estate market so as to advocate effectively on your behalf when negotiating with your lender.  In a short sale, you do not pay any closing costs or commission.
  4. Deed-in-Lieu of Foreclosure.  You should attempt the first 3 solutions before making this choice.  It is still considered a foreclosure.  The lender can levy a "deficiency judgment" and file a 1099 document to the IRS.  The Deed-in-Lieu can appear on your credit report as a foreclosure. The deficiency judgment against you can be for less than in an outright foreclosure. It is beneficial to your lender to do a Deed-in-Lieu because it saves them on their expenses to foreclose.
  5. A completed foreclosure.  Your lender takes back the home. The "deficiency judgment" is not just the balance of the loan but will also include legal fees, interest, maintenance of the home after the foreclosure, hazard insurance costs, and HOA fees.  Your hands are not wiped clean when your home is foreclosed.  See the "Consequences of a Foreclosure".  

Pensacola homeowners, please be proactive.  The first 3 options give you control over the outcome.  If it comes down to a short sale, then your expert real estate agent is invaluable in negotiating a successful outcome.  Reduce the negative effects on your Credit Score/Worthiness by being proactive.

                              

 Partial List of My Successful Foreclosure Prevention

  • West Strong Street, North Hill Pensacola   
  • West Shore Drive Pensacola         
  • Amberwood Drive Pensacola                                        
  • Lanett Drive Pensacola       
  • Bucyrus Cantonment                                                    
  • North 7th Ave Pensacola
  • Amberwood Circle Pace                                                
  • North Spring St Pensacola 
  • Pauline Cantonment                                                       
  • Hampton Bay Blvd Milton
  • Bellview Ave Pensacola                                                   
  • Hollowbrook Drive Pensacola
  • Chemstrand Rd Pensacola                                             
  • Anchor Ln Pensacola   
  • Wimbledon Drive Pensacola                                          
  • Keating Rd Pensacola           
  • Two Sisters Way Pensacola                                             
  • Gary Circle Pensacola           
  • Mills Ave Pensacola                                                         
  • Wonderwood Ct Pensacola
  • Bartow Ave Pensacola                                                     
  • Norwood Drive Pensacola   
  • South 66th Ave Pensacola                                             
  • Sandy Key Drive Pensacola 
  • Silver Creek Drive Pensacola                                           
  • Heatherwood Dr Pensacola 
  • Old Spanish Trail Pensacola                                            
  • Northpointe Drive Pensacola
  • Weatherwood Drive Pensacola                                     
  •  Dogwood Drive Milton           
  • Port St Joe Street Pensacola                                     
  • Hwy 97 South Cantonment         
  • Magnolia Ave Pensacola                                                 
  • Barcia Drive Pensacola           
  • Turnberry Rd Cantonment                                           
  • Lago Vista Ct Pensacola 
  • Walbridge Rd Pensacola                                               
  • Wakefield Drive Pensacola       
  • San Carlos Rd Cantonment                                      
  • E. Nine Mile Rd #6 Pensacola
  • Bayou Blvd Pensacola                                            
  • Flax Road Pensacola               
  • Shady Creek Drive Cantonment                                     
  • W Michigan Ave F3
  • Pensacola Louisville Ave Pensacola                                                 
  • El Camino Drive Cantonment
  • Flintlock Drive Pensacola                                                 
  • Panferio Dr Pensacola Beach
  • Wallace Lake Rd Pace                                                     
  • Eclipse Ln Pensacola              
  • Cunningham Place Pensacola                                          
  • Dunmire Rd Pensacola
  • Lakewood Rd Pensacola

Give Jack Lara, Broker-Associate, a call at (850) 616-6377 or send an email to [email protected]

All information is deemed reliable but not guaranteed.

Please Seek Financial and Legal Advice from Licensed Professionals
Joaquin Alberto Lara, LLC eXp Realty, LLC