When it comes to preventing a foreclosure, individuals that are residing in Michigan have a few options.
For example, foreclosures in Livonia Michigan and Macomb county Michigan foreclosures help to illustrate this point. This is because when looking at the statistics surrounding the rate of Macomb county Michigan foreclosures, it is easy to calculate that the number of homes in default is not directly proportional to the amount of foreclosures in the county of Macomb and in the city of Livonia.
Macomb is a very hot spot when it comes to homes in default, but at the same time there are fewer completed Macomb county Michigan foreclosures and foreclosures in Livonia Michigan, because of the different ways in which individuals can handle potential foreclosures.
Short sales are one of the options that are open to individuals when they are faced with the decision of being another statistic when it comes to the Macomb County Michigan foreclosures and the foreclosures in Livonia Michigan.
This is often done when the lending institution wants as much of their money back as quickly as possible to remove bad debt (or 'non-performing assets') from their books. Rather than join the other Macomb County Michigan foreclosures, in many instances the bank will just try to sell the defaulted mortgage on the home incredibly cheaply.
Some of the foreclosures in Livonia Michigan are not homes in horrible shape, but they often will be in need of various repairs. If a home has a bad roof, for example, the bank may rather unload the home on the first willing individual that would pay them an amount that lets them recoup a fair amount of their original loan. Short sales are executed by real estate investors. It's important to know that if you are the homeowner in default, you cannot be the one who executes the short sale.
But if you get in touch with a real estate investor who is experienced in short sales they may be able to assist you by stopping your home from going into foreclosure. This doesn't mean you'll get to keep your home. But it will mean, if the short sale is successful, your home won't be auctioned off on the country courthouse steps by the sheriff and having a foreclosure mar your credit score.
A successful short sale means another home is able to avoid becoming another one of the foreclosures in Livonia Michigan or one of the Macomb county Michigan foreclosures because it has been sold outside of the sheriff’s auction. And even though the loss of their home is not something anyone wants to go thru, a successful short sale benefits all three parties concerned: the bank (removing bad debt); the distressed homeowner (stops the foreclosure from going onto their credit); and the investor (who has a chance to buy the defaulted mortgage at a discount).
Before a home or residency goes on auction, there is another route that an individual can take before succumbing to having their house becomes another of the Macomb County Michigan foreclosures.
Like the foreclosures in Livonia Michigan, the Macomb County Michigan foreclosures will also be able to be prevented by looking at the other available options for homeowners in the event that they consistently find that they are unable to pay their mortgage on time and in full. For those who have faced foreclosures in Livonia Michigan, they can move out of their home and allow another individual to move in and pay for the note on a rent to own basis.
Rent to own, also called lease option, is a fantastic way for a distressed homeowner to prevent a foreclosure since a tenant-buyer steps in and takes over the mortgage payments and then has an option to purchase the house as well. Once again, the credit damage of a foreclosure can be avoided if a rent to own is performed.
Real estate investors like us can also assist in acting as a principal of the transaction by facilitating the lease option and making sure it is done right. Real estate investors can even help the distressed homeowner by finding the tenant-buyer for them to prevent the foreclosure from happening.
Lastly, many individuals consider the option of declaring bankruptcy when faced with foreclosures in Livonia Michigan. Also, in Macomb county Michigan foreclosures can be stopped by doing this. Although this may seem like a very easy way out initially, but the truth is that this kind of action can impact a person’s life for years to come.
Although we are not attorneys, this is ultimately not the best way to settle Macomb county Michigan foreclosures or the foreclosures in Livonia Michigan. The main reason for this is that an individual will eventually begin to notice that the credit destruction that this singular act can entice will likely be reminiscent in the different ways in which financial institutions and lending companies will approach the individuals who declare bankruptcy for years and years to come.
Also, although a bankruptcy will stop the foreclosure, it will not allow the distressed homeowner to keep their house. But, to be fair, neither will a short sale nor a rent to own. But in the case of the last two options, further credit damage can be prevented and the dignity of the person can be maintained by avoiding foreclosure and bankruptcy.
Even if foreclosures in Livonia Michigan and Macomb County Michigan foreclosures statistics continue to go up, this does not mean that the home owners need to suffer in terms of their credit. They simply need to educate themselves
Dan Ho is a real estate investor is Michigan. Visit macomb county Michigan foreclosures and foreclosures in Livonia Michigan for more information now on how to stop foreclosures.
Source: www.isnare.com
