Grand Rapids Homeowners: How to Stop the Foreclosure Process in Michigan

There are generally three techniques a homeowner can use to prevent the foreclosure process in Michigan. As a homeowner, you have the options of: a short sale transaction, mortgage loan re-instatement, or a mortgage modification. This article will discuss briefly, each of these kinds of processes and how they apply to short sales in Grand Rapids

What is a short sale property transaction? A short sale opportunity develops when the property owner no longer has the ability to pay his or her mortgage loan. Usually, there’s no foreseeable alternative in the near future for the homeowner and the borrower is in danger of losing his or her property once the mortgage lender begins the property foreclosure process in Michigan. 

In order to help save the homeowner’s credit rating and eliminate a potentially costly and prolonged property foreclosure proceeding, the owner of the home, as well as, the mortgage loan company agrees to seek a short sale. 

The mortgage company agrees to settle for, in most cases, a significantly less amount of money than the actual outstanding property loan. They fully understand they will lose money on your home; however, they still get most of their financial investment back and avoid the costly, time consuming property foreclosure process. 

Once the decision has been made to put your house up for sale you can either sell it by yourself, (FSBO) for sale by owner, or you can use any good short sale realtor in Grand Rapids that has plenty of short selling experience. Keep in mind that just because your mortgage company has agreed to do a short sale, doesn’t mean they’ll settle for just any short sale offer that comes in, in some cases the lender will turn down a good short sale offer, or make the process so complex that you may risk losing your new buyer. That’s why using any of the good short sale realtors in Grand Rapids is to your advantage. 

The mortgage loan reinstatement method and how it applies in Michigan. Due to Michigan’s current economic climate, many West Michigan homeowners’ have found themselves in the unemployment line. The downside to trying any mortgage reinstatement plan is that generally, the property owner has to come up with the total amount of mortgage payments that they’re behind on to begin with. Once in a while, the financial institutions will give an individual some sort of time frame to get current with their home mortgage loan. Generally a 90 to 120 day grace period, providing you continue to remain current with the monthly payments from then on. For many West Michigan homeowner’s, obtaining the money to bring their mortgage payment up-to-date with their home loan in the first place, is usually the most challenging obstacle. Another strategy is the mortgage loan modification program. 

What is a mortgage loan modification? A Mortgage loan modification is usually the very first method a property owner should use once they begin to have difficulty making their mortgage payments. Sometimes, the mortgage company may be the first to suggest a mortgage loan modification. The mortgage company may work with the homeowner to figure out if there is anything that could possibly be done to keep from using the foreclosure process

A loan modification program will involve using one or more of these techniques: adjusting the interest rate on your loan, reducing the monthly mortgage payments and adding the balance to the backend of the mortgage, or perhaps re-doing the entire mortgage agreement it’s self. For many homeowners’, those who meet governmental standards, a mortgage loan modification program can help to save their property against the foreclosure process in Michigan. 

As previously explained, selling an individual’s family home by means of a short sale is going to be a financial decision made between the mortgage lenders and the owner of the home. In Michigan, Short sales are generally thought of as a final attempt to avoid a home foreclosure. Homeowner’s should certainly seek the help of a good Michigan short sale real estate agent that has plenty of practical experience to help guide you throughout the transaction while trying to sell your house. 

As you can see, there are a few methods that a property owner could utilize to avoid the home foreclosure process in Michigan; use any or all of these steps to your benefit. Some homeowners could save money by selling the home by themselves; however, choosing a good short sale realtor in Grand Rapids to sell your home could very well speed up the selling process and get you back on your feet sooner.