The Best Way to Avoid Foreclosure, According to Real Estate Developer Andrew Shader
Homeowners who fear foreclosure can turn to expert real estate developer Andrew Shader for advice on avoiding any impending ownership crisis.
Although the overall percentage of homeowners at risk of foreclosure is decreasing over time, many people still need help with home financing challenges.
What Happens During Foreclosure
Foreclosure occurs when a lender tries to recover the money owed on a defaulted loan by taking ownership of the home and selling the mortgaged property.
This process happens if you stop making your mortgage payments in full and default on the loan.
If your home is at risk of foreclosure, it’s crucial that you understand the forbearance period and what options are available before the lender takes possession of your home.
The Forbearance Period
Since the start of the 2020 pandemic, it’s been difficult for homeowners to successfully make their mortgage payments. In reaction, the government launched a forbearance program that provides support for homeowners.
It’s not too late to apply, and a large number of borrowers are eligible for forbearance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. You must contact your mortgage provider to understand your options if you’ve experienced a pandemic-related financial hardship.
When you contact your mortgage provider, ask them if you’re eligible for protection under the CARES act. Remember that forbearance is when your lender allows you to pause or reduce your payments for a set period as you sort out your finances.
Forbearance can give you the time you need to get your exit in order, but it will not erase your liabilities if you can’t find a buyer in time.
Selling Your Home
If your house is at risk of foreclosure, it’s essential to understand your home’s full market value. Many homeowners have drastically more equity in their homes than they realize. There’s been a massive growth in home prices as buyer demand far outweighed housing supply over the past year.
According to CoreLogic, homeowners have gained an average of $33,400 in equity during the last 12 months. Furthermore, the average equity on homes that are mortgaged is $216,000.
It’s important that you find out the true value of your home since you may be able to sell your house to avoid foreclosure.
If you’ve been chipping away on mortgage payments while the equity of your home has increased, there’s a high chance you’ll be able to avoid a crisis.
Alternative Options To Avoid the Foreclosure Process
If you’ve discovered that there isn’t enough equity in your home to avoid foreclosure, there are a few other options available.
- Loan modification
- Deed-in-lieu of foreclosure
- Short sale
These are all alternatives Andrew Shader recommends which help you avoid going through the foreclosure process.
About Andrew Shader
Andrew Shader is an entrepreneur and a successful real estate developer and investor in Fort Lauderdale, Florida. He got his Business Management and Marketing degree from Florida State University. After spending years in the insurance industry, Mr. Shader decided to shift his focus to real estate. Andrew specializes in value-added properties and boosting property value through investment.