What to do when in trouble
Eric, I’ve talked a lot about what to do if you are in trouble with other options to avoid foreclosure. But what if you’re one of the unfortunate ones who have lost your home to foreclosure. Again, the word is, don’t put your head in the sand.
If ever there is a time in credit history that future credit grantors will be compassionate and forgiving for those who have lost their homes to foreclosure, the time is now. However, how you behave after the foreclosure is critical.
When you know your foreclosure is eminent, start packing. The sooner you get out, the better it will be for you. Whatever you do, don’t let it go to an eviction. Not only will you still have to move, but in all probability you’ll be slapped with an addtional judgement for fair market rent for the time you remain after. Additionally in one case we just experienced, they were also charged for the bank’s attorney’s fees and if that is not bad enough, they now have the foreclosure followed the eviction judgement. Talk about “credit curtains”…. and it’s not necessary.
Most lenders understand the heart ache and the burden these homeowners are facing. To help them out, most are offering “cash for keys” as an incentive for those who have lost them homes to move. In essence, if you agree and move out within the time frame – usually 2 weeks – and leave the property broom clean and free of all debris, the bank will trade you relinquishing the property for a check. As always, if you have more questions, please don’t hesitate to give me a call at 973-4532.