Next month a record of 22,504 properties are going up for auction. These properties foreclosed due to unpaid taxes and are a true testament to devastating effects from the real-estate crash. In the past three years, Wayne county has foreclosed on nearly 50,000 properties according to an article from The Detroit News. Most of these properties are located in Detroit. The city has seen an unprecedented
foreclosure rate and the foreclosures are up by 57 percent. The article also discussed that the tax foreclosures are unlikely to decline for another two years.
In Detroit, foreclosures are a reality. You may have seen your neighbor, friend, or family member forced to leave their home. There are ways to avoid foreclosure, and with the right attorney you may be able to stop the foreclosure proceedings on your home. Individuals on the brink of foreclosure should start researching other options. There are three options we will discuss in this post: loan modification, deed in lieu, and short sale. All of these may provide you with a viable alternative.
Loan modification typically features either a reduction in interest rate, an extension on the lending period, or interest only payments until you can afford regular payments. Deed in lieu is an alternative that allows the borrower to give his keys to the lender rather than going through the foreclosure proceedings. This is often desirable because it may be less damaging to the borrower’s credit. A short sale allows a borrower to sell their home for less than the loan balance. This is complicated procedure may be desirable for individuals who qualify. If you have any additional questions, please contact an attorney at the Law Offices of Marshall D. Schultz. We are here to provide you with the information you need to face your financial crisis.