Home :: Foreclosure Options :: Homeowners without Equity

Avoid foreclosure with help from our Short Sale Experts

For Homeowners who own Property WITHOUT Equity

For those homeowners facing foreclosure without equity, they need to accept the following facts:

Fact: The homeowner owes more on the property than it is worth.
Because of this, there isn’t enough equity to pay a real estate commission or closing costs. The property is likely in some sort of disrepair and the homeowner hasn’t the ability (money and/or time) to make any repairs, which would serve to reduce the marketability (thereby enlarging the amount of time necessary to sell and close) and the sale-ability (the price that a house in disrepair will bring verses the same house in pristine condition, and not to mention any new buyer’s lender required repairs.
Conclusion: The homeowner wouldn’t receive any money from a straight up sale

Find out how 180 may be able to legally get you some money with a "Short Sale".

Find out how 180 may be able to legally get you some money with a "Short Sale".

Fact: The subject property will eventually be sold at the foreclosure auction
Once filed, the foreclosure action continuously moves forward and gains momentum with time. The lender will very rarely cease foreclosure activities to negotiate a short sale. The short sale, or any sale for that matter, must be finished prior to the completion of any scheduled foreclosure sale.
Conclusion: The homeowner will receive no money from the sale of their property at the foreclosure auction and, to make matters worse, the lender may seek a deficiency against the homeowner for any money not recovered at the sale.

Find out how to stop the foreclosure sale.

In Summary
There is no chance of the homeowner receiving any money from this property, no matter how it is sold (via foreclosure auction, lender approved short sale or straight up sale).

Find out how 180 may be able to legally get you some money with a "Short Sale".

For those borrowers without equity, there is still a glimmer of hope and it is called a “short sale”. A short sale is a term coined to describe a transaction in which a lender agrees to accept, as full satisfaction of a debt, an amount less than they are entitled to collect by law. Because the lender is accepting less than the full amount of the debt as satisfaction, they have come up with a few conditions. These conditions, if violated, will serve to completely ruin any chance at a settlement between the lender and the homeowner, and will void any agreement currently in place.

The first condition is as follows: the lender must be given the time and information to completely assess the delinquent homeowner's financial condition as well as the condition of the property.

The second condition is: the borrower cannot receive any proceeds from the sale of the subject property as evidenced by the closing statement (also known as the HUD1).

Find out more about Short Sales.