Stop Michigan Foreclosure

Is There A “Soft” Exit From Foreclosure?

I came across this article which talks about lenders attempting to find softer exits other than foreclosure for distressed borrowers.

I had to ask myself, “softer exit for whom”? My thinking is that a truly soft exit is one where someone lands on their feet and gets moving to better times faster. Who is landing on their feet with these “soft exits”? Although the article does not say it, I have to believe that the lender is looking out for their best interests (don’t they always?) and not necessarily you. I believe it is the lender who is benefiting from the soft exit.

For example, the article discusses how Citigroup will allow a distressed borrowers to stay in the house for up to 6 months before turning over the keys. However, you’d have to:

• Not qualify or be declined for other workout programs
• Keep the property in good condition
• Pay for utilities
• In most cases, pay for taxes, Insurance and HOA fees

This may be a good option for some. However, most of the sellers we talk to who can no longer afford the house, also cannot afford taxes, insurance and making needed repairs. The advantage to the lender is that they get you motivated to take care of the house, making it easier for the lender to resell the house when they eventually get it back. Also consider that in states like Michigan, you already have a redemption period during which you are legally allowed to live in the house after the foreclosures sale so the bank isn’t really granting anything that is not already the your legal right (for Michigan).

It would be a good idea for you to find out how accepting this proposal is going to your credit (assuming that’s part of your goal). It could show as a voluntary foreclosure, not to mention the 6+ months of missed payment all which will only harm your credit. This definitely will not help you land on your feet and able to start over.

I would like to suggest that a “softer” exit for you if you’re facing a Michigan foreclosure – a short sale. This can help to salvage your credit making it much easier to land on your feet. The article mentions common pitfalls when you try to do a short sale yourself or you use an inexperience Realtor or other person to do the short sale. However, when you use an experienced negotiator like us, these so called pitfalls are just issues that we are aware of and have successful plans to deal with or avoid completely.

Put our professional expertise to work and let us help you make a soft exit from a problem situation and get back to better times. Give Emily a call today to discuss your options and for free, confidential advise about your situation.

Ann