RISMEDIA, August 7, 2007–Gavin Fenske, president of Great Financial Real Estate, wants homeowners to know that as bad as things can get in the real estate market, and with current news headlines reporting a major foreclosure crisis, anyone facing this horrific fate can be saved.
“So far, in 2007, California has had six times the national average in foreclosures, while Rhode Island has the worst ratio of sales to foreclosures, at 14 to 1,” states Fenske. “By now, its common knowledge that the main culprits are skyrocketing ARMs and rising interest rates on subprime loans,” he says. “This leads to millions of homeowners losing not just their biggest investment, but their economic livelihood.”
Despite the daily stories in the media about one homeowner after another falling victim to foreclosures, there are alternatives that could have prevented most from financial devastation. It’s called a short sale.
This under-reported option means the potentially repossessed home would still have to be sold, but if it goes through:
-Seller will avoid foreclosure
-Seller can stay in home for free until it sells
-Seller saves their credit, and
-The lender will pay closing costs including realtor commissions.
“A little known fact is that realtors and lenders often work together to help everyone involved,” says Fenske. “Being a foreclosure victim can ruin homeowners’ credit for the next 7-10 years, making it nearly impossible to get another loan for a house. So there is some vested interest in helping them survive relatively unscathed.”
The bottom line, Gavin emphasizes, is there are steps along with very attractive options available to those who want to avoid becoming a casualty of foreclosures. It takes a lot of work from dedicated realtors but it can be done. “It’s a very stressful time for clients and to be able to give them a parachute, as opposed to them being trapped in a financial freefall, can mean the difference between a decade of economic ruin or salvaging the American Dream.”
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