What happens during a foreclosure?
A foreclosure occurs when the lender that a person is borrowing from decides to sell the asset, in our case the property, due to the borrower not being able to maintain the payments for the loan. This can be a scary situation for many Americans. It can and has happened to some of the hardest working people. What dangers does the homeowner face when a foreclosure auction is coming up?
A person who does not sell their home before the foreclosure date can face life altering challenges. One is having to file for bankruptcy. This often does not cover the mortgage you pay on your home and it will still have to go into auction. Another way it affects you is your credit. Once your home is bought in a foreclosure auction then your credit score is affected on average by 100 points.
We at Monterey Real Estate Solutions have been able to help homeowners in these types of situations. Due to the timeline that homeowners in this situation have, accepting a cash offer for a short sale is one of the best decisions a homeowner can make. They save their credit, are able to pay off any mortgage payments they are behind on and can fund a down payment on a new downsized property that they can call home. Give us a call at (831) 731 3003 so we can help you understand the details of this situation and help you understand that there is a way out of it!