Rockland Foreclosure and Repossession How Do They Differ
No matter the circumstance, a repossession and a Rockland foreclosure of a property is an unfortunate situation. These situations both stem from a Rockland property owner being unable to make adequate payments on their bills, causing the bank to take possession of the property. While these two terms are very similar, they are not the same situation.
Differences
A Rockland foreclosure is a process that a lender will follow if the loan is defaulted on. Depending on the area in which a person lives, this process can begin as quickly as three months after payments are stopped up to a year.
Housing repossession is the result of a Rockland foreclosure. It describes when the lender has taken ownership of the property due to bills being unpaid. A Rockland home is called repossessed once the foreclosure is complete. After the property has been taken over by a lender, they will sell it to pay off the remainder of the loan.
Rockland Foreclosure
When a Rockland homeowner becomes at least three months late on payments, the lender will begin the foreclosure process. Typically a Rockland foreclosure takes up to a year, or even two, to fully process. A property is usually not repossessed until this process has been fully completed.
Since a repossession does not happen right away, the Rockland homeowner can continue to live in the home. Once the foreclosure is finalized, a date will be set for the homeowner to vacate the property.
Options
In a situation where a foreclosure may be imminent, the homeowner should not be scared to approach their lender about the problem. Banks do not want to own property, which is why they will typically sell for what is owed on the mortgage. They do not seek to make a profit from a repossessed house; they just want their debt to be paid back.
There are assistance programs for a person that is facing Rockland foreclosure. Start by talking with the bank about the situation. They will refer any homeowners that are having trouble with their payments to a housing counselor that will hopefully help them keep their home.
Sell
When it is clear that payments are not going to be made or a Rockland homeowner has been missing payments, the best option is to sell. If the home is sold for more than what is left on the mortgage, the homeowner can walk away from the debt and even have extra cash. It is best to sell quickly. The closer to the end of a foreclosure, the harder it will be to sell.
Short Sale
There are instances where the Rockland house is not worth what is left on the mortgage. In this case, a short sale can be used. These sales are not as simple as selling to pay off a mortgage, but they can be done to help a homeowner that is struggling with payments. The lender that has processed the mortgage will have to approve the short sale.
A short sale will reduce a person’s credit score, however not as much as a foreclosure. It is better to go through with a short sale versus allowing a lender to foreclose on the property. To make the process go smoothly, find a real estate agent that has dealt with short sales before. The more experienced they are, the easier it will be to complete the sale.
A Rockland homeowner that is facing foreclosure often does not talk to their lender. They feel pressured to make the payments that are owed and do not want to discuss financial hardships. While it can be a tough discussion, a lender is likely to help someone if they are in a bad financial situation. There is help for mortgage payments, and the homeowner does have the option to sell the property as well.