Disclaimer – This is not legal advice, consult the advice of an attorney if you can afford it
Too many Maine property owners are unnecessarily allowing their homes to become the property of the big banks by simply ignoring the reality of their situation. They are not taking action. They are putting their heads in the sand.
Foreclosure is the result of falling behind on your mortgage payments. Perhaps they have lost a job, took on massive debts or increases to living expenses and no longer qualify for a new loan refinance. They may have also applied for a loan modification as a result of their bank making them false promises, and after months of phone calls, lost paper work and frustration – they get a denial letter.
How do you stop the Maine foreclosure after all of the other options of keeping your home have been expended? The Short Sale.
The short sale is an option for avoiding foreclosure that offers the homeowner a glorified way of transitioning to a new residence while avoiding all the devastating affects of a foreclosure judgment and sale.
The foreclosure will stay on your credit and negatively impact your life for up to 7 years. A foreclosure judgment will enable the bank to not only repossess your home and evict you in the process at their terms, it will also award the bank a Deficiency Judgment, which allows them to capture the remaining mortgage balance, penalties, interest and legal fees after the bank charges off the loan. For example – a mortgage at the foreclosure sale date is $300,000 but the bank only sells the home for its current as is value of $150,000 , the deficiency that the former home owner IS STILL $150,000 after the foreclosure. Talk about insult to injury. The bank IS GOING to come after the homeowner for this remaining balance in a separate law suit in district court and collect its money. IT DOESN’T PAY TO IGNORE YOUR PRESENT SITUATION.
So how do you stop the Maine Foreclosure process without having to pay for an expensive attorney? Hire a Maine licensed Real Estate agent who is a Short Sale specialist.
A short sale can be initiated at any point in the Maine foreclosure process up to the Public Sale date. After this date – its too late. However between the first missed payment and the public sale date – the Short Sale can happen in the State of Maine, which means the homeowner will hire a Realtor specializing in short sales and list and sell the property – all on their own terms while attaining the benefits of a short sale and stopping the foreclosure sale dead in its tracks.
What are the benefits of a Maine short sale?
First – rebuilding credit faster than a foreclosure or bankruptcy. In as little as 1 year a person who undergoes a short sale may qualify again for a home mortgage as long as they meet other credit and income criteria.
Second – A deficiency waiver. The bank will agree to allow the short sale to process, and give the homeowner a waiver of all their rights to pursue them for a deficiency judgment. This is huge. This is an enormous financial windfall for homeowners who are WAY UNDER WATER on their mortgages. This may result in a tax liability for certain investment properties but for primary residences they can uses their accountant’s help to qualify for a waiver of tax liability.
Third – CASH. In many instances home sellers in a short sale will be given money for relocation assistance. Usually up to $3000 in some programs. Although this is not guaranteed and is not a huge amount – its better than nothing and will help towards a new rental.
In summary, don’t let your emotions get the best of you. Don’t panic and simply walk away out of indifference. Take action and be responsible if you have no other options in retaining your home, a short sale is the best answer. And it won’t cost you anything.