The word foreclosure for many property owners conveys the images of possible financial ruin, dread and fear. While for others, including many real estate investors and home buyers, the word conjers up visions or positive investment or economic opportunity. Regardless of your personal perspective, Foreclosure is possibly the most misunderstood aspect of the residential real estate market.
You can stop foreclosure on your Cedar Rapids Home. For Cedar Rapids homeowners struggling to make payments or sitting with a home or condo with no or negative equity (and unable to refinance a rapidly increasing adjustable loan) the options may seem dismal. Many Cedar Rapids area home sellers are looking at the possibility of facing foreclosure.
Every Week, we receive calls from area homeowners who need help immediately - in order to avoid foreclosure! If this is the case with your situation or someone you know in the greater Cedar Rapids area, you've come to the right place… See our Stop Foreclosure - Cedar Rapids Short Sale Help Center to learn about your options to avoid foreclosure.
Are you behind on your house payments? One of the scariest things in life can be staring into the face of a foreclosure. We are experts in stopping foreclosure FAST!
If you are an owner of Cedar Rapids real estate that desires to understand what options you may have in avoiding foreclosure or possibly even walking away from your mortgage obligation, fill out the contact form on the right or contact us at 319-431-5859 to schedule a confidential short sale consultation.
The foreclosure process for a Cedar Rapids homeowner is initiated when the lender files a Notice of Default, or NOD, with the County Recorder after a borrower defaults on their mortgage. The foreclosure process ends when:
Within the mandated grace period of 21 days, as determined by Iowa state law (the pre-foreclosure period), the homeowner (borrower) has several options
1). The homeowner pays the lender the amount needed to reinstate the loan, or
2). The home seller who has defaulted is able to sell to a buyer during the pre-foreclosure time period, at a price that will allow the borrower (home seller) to pay off the loan. A situation where the loan is greater than the sale amount, but the lender agrees to a loan pay off that is less than what is owed is referred to as a short sale, or short pay. or,
3) At the end of the pre-foreclosure period - 21 days in Cedar Rapids and Iowa, a trustee sale occurs on the 'courthouse steps' and the defaulted property is sold at a public auction to a third party, or
4) The lender (Bank) takes ownership of the property through an written agreement (deed-in-lieu agreement) with the homeowner (borrower) during the pre-foreclosure 21 day time period, or
5) The Bank (lender) buys the property at the trustee sale. if this occurs, the bank-owned property is referred to as a real estate owned asset, or REO.
For homeowners who are facing foreclosure, or are having trouble making their mortgage payments, it can be a frightening and lonely process. It is very important for homeowners to be aware of the large network of FREE assistance available from legitimate, well-trained non-profit counselors. The U.S. Department of Housing and Urban Development (HUD) has certified approximately 2,900 non-profit agencies throughout the country whose counselors have completed required training. These agencies are not permitted to accept a fee in exchange for foreclosure prevention counseling. HUD-certified counseling agencies are a responsive and reputable source of assistance for homeowners seeking to avoid foreclosure. Homeowners facing foreclosure may also want to seek legal representation from a competent and ethical attorney. For low-income homeowners, nonprofit legal aid organizations may be an excellent source of representation.
Here are links to sites that help connect homeowners with agencies that provide foreclosure prevention counseling:
Purchasing real estate or homes directly from the bank or lender is preferred by many real estate investors and home buyers because it can be a more predictable and less-emotional home purchase process than buying from the distressed seller who is facing foreclosure and may or may not go through (or be able to deliver title) with the transaction.
First, most home buyers do not realize the first misconception - and it's a big one! Not every Bank Owned Property or REO is good deal. Many banks with property for sale in the Cedar Rapids area seek to obtain market value for properties that they have foreclosed on in order to attempt to recoup as much of their losses against their loan balance as possible. Others lenders are more focused on liquidating REO Real Estate Owned - an Accounting Term for Banks) inventory as these properties represent non-performing assets have a severe negative impact on the lenders books and financial condition. We have extensive knowledge of the foreclosure market and have relationships with asset managers and REO bank officers -- knowledge which is very valuable to a home buyer or investor looking to pick up a foreclosure at a bargain price.