Avoiding A Foreclosure On Your Andover Home

 Today in the United States there are more and more homeowners facing the devastating financial challenge of foreclosure. Andover, MA and the surrounding communities are not immune from the national housing market crisis.   While single family homes are still selling in Andover, 4.3% fewer homes have been sold this year compared to last year. Market data also shows a nearly 10% decline in the median sales price of a single family home in Andover. Sales of condominiums in Andover have been even slower.  Market reports show a 32% decline in the number of condominium units sold along with a 29% decline in the median sales price.  

 If you’re facing a financial hardship or are at risk for foreclosure on your home in Andover, consider the following alternatives.

1. Reinstatement: This option is extremely simple, but the most difficult. The homeowner asks the mortgage company the total amount owed and pays it all, including fines and fees. It does not require approval, and lenders will allow this up to the day before the final foreclosure sale.
2. Forbearance or Repayment plan: This is when a homeowner negotiates repaying their back payments over a period of time. Usually, the homeowner makes their current payment as well as a portion of the back payments owed. Most lenders require homeowners to be qualified for this option.
3. Mortgage Modification: This plan is when either the interest rate of the loan, the principal balance or the term of the loan is reduced. The result is generally a lower, more affordable payment for the homeowner. Homeowners need to qualify for this option and must supply all necessary documentation, while the lender has to be actively pursuing modifications.
4. Short Sale:  Contact me your Certified Distressed Property Expert to negotiate the sale of your home. In many cases the mortgage company will allow a short sale which includes all realtor and legal fees.

For more information on ways to avoid foreclosure go to the HUD website.  To find out the current value of your home go to MyHomeValueToday.