Where do you go after a short sale or foreclosure?
This foreclosure crisis has gone on longer than a sane man would have guessed. It has probably affected people you know. It has also affected many pets. The Humane Society has many homeless dogs sleeping outside on cold winter nights because of their overcrowded conditions. The dogs do not understand foreclosures or short sales and they did nothing wrong to be in a “tent city,” but they do know how to be man’s best friend. If you are a dog lover and can give a pet a good home, you should pay the Humane Society of Central Arizona a visit.
People need a home too. Many good people who have suffered a short sale or foreclosure have options to consider:
Renting — Renting is the immediate option that comes to most minds. For many, it is the best option to get back on their feet and reassess their opportunities.
There are many rentals on the market. Most landlords seem to be understanding of marred credit in these times and will make exceptions for subpar credit due to a home loss.
Lease with Option to Buy — Many people still have some savings and want to get back in the housing market to take advantage of today’s discounted home prices. Some sellers will lease a home to a buyer with an option to buy it at today’s prices after a specific time period. In some instances, a portion of the rent may even be applied to a future down payment.
Owner Carry — Many sellers have a need to relocate and are willing to finance the purchase of their home for a period of time, if the home is free and clear of debt. Generally, an owner carry (seller financing) will command a higher interest rate than the market rate with a negotiable down payment. This allows a buyer to get into a home at today’s prices. It also gives the buyer the opportunity to repair their credit so they may refinance at a lower rate down the road.
Private Money — Private money is available from certain “risk taker” investors. One should be very careful before entering this type of arrangement. Without a doubt, an attorney should review these documents to protect your best interests.
For many, adversity creates other opportunities and there are options when recovering quickly from a short sale or foreclosure.