Are you facing Foreclosure?

We have seen a huge increase of foreclosures in our market here in South West Florida. Cape Coral being the number 1 and Lehigh Acres close behind. What is the cause of all these foreclosures. In most cases people owe more than the house is worth now that prices have dropped. These people most likely financed with 100% loans with a 3/1 arm. The prices have gone up because of the arm and now they can't afford the new payments. When originally getting these loans the thought was; I will refinance before the rate goes up. It was a great thought but no one knew that prices would drop and it would be impossible to refinance when you owe more than the house is worth. Very sad situation.

Is there any help? There are some avenues that you can try if you find yourself in this situation. We will cover them breifly here but we encourage you to contact us for more information to see if your situation could be handled within the terms we discuss.

1. You can talk to your lender and explain the situation to them and show them how you cannot afford the payment but would like to see if they can reduce the interest rate. This has been done but in most cases, don't count on it. It is a long shot.
2. You can hire a specialist in dealing with these situations (some real estate brokers or realtors may handle these) and let them work out a plan to try and get your lender to either do as #1 suggests or a short sale or deed in leu of foreclosure. Please understand that there is no guarantees with trying this method but your chances are much greater when you use these specialists. They know what the lenders want to know and how to present it to them. The only drawback is this is not done for free. You are already in a negative financial situation and you have to spend money here ( usually from $500-1,500) and there is no guarantee it will work. You have the most chance using these specialists but you have to be able to pay the fees that go along with it.

If you feel like you want to pursue one on these avenues with us, you can contact us for a free phone consultation. Call us at 239-368-8520 for more information. Also check us out at our website at www.aaarealtyllc.com