Today’s homeowner can rest assured that there are options when being faced with a foreclosure situation.
Reinstatement, forbearance, rent out the property, mortgage modification, refinance or sell the home are the typical options that could fit a homeowner trying to avoid foreclosure. Each one of these options bring its fair share of pros and cons.
There are record numbers of defaulted loans that are impacting North Texas.
"I’m seeing more and more families and individuals who are having a problem keeping up with their mortgage payments in the North Texas area," said J.J. Chapa, a Broker with Keller Williams Realty. "These scenarios are caused by a myriad of different individual issues. It is causing real estate professionals to think outside the box when it comes to finding solutions for these homeowners."
Some causes of default are the typical scenarios; job loss, medical debts, divorce to name a few. The biggest culprit, however, is the adjusting rates from adjustable rate mortgage (ARM) loans.
"The ARM was not the best product for many homebuyers," Chapa said. "However, the consumer is in the ARM and when that monthly payment goes from $1000 a month to $1400 a month, something is gonna give."
What typically "gives" is the owner. Most of the time, they don’t understand their options. Most owners believe that their only option is to let the property foreclose.
The short sale has become one way to save an individual or family from a foreclosure.
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