Author : Art GibRight now there is a lot of real estate in New Orleans in foreclosure If you find yourself facing foreclosure in New Orleans, there are several steps you can take to avoid it and save your home and credit
First, you can try calling your bank and working out a repayment plan If you are only a month or two behind, they are often willing to take your missing payments and divide the amount you owe into 12 equal payments and add them to your regular monthly payment If it is longer than 2 months behind, the best thing you can do is try to work out a forbearance plan
The bank will need to see you have steady income and are still living in the New Orleans home Then they will potentially move the missed payments to the end of the note and the mortgage will be extended by the amount you owe Basically the bank is giving you an additional loan amount for the missed payments, including your principal and interest You have the option to turn the keys over to the bank and walk away from your house
You will lose any equity you have built up and will still have to look for a place to live You could try to sell it and recover some of that equity It is really hard to be able to know what to do by yourself A New Orleans real estate agent can help you with the selling of your home
If you have no equity or even negative equity, meaning you owe more money on your home than it is worth, you won’t be able to sell it for enough money to pay the mortgage off A New Orleans real estate agent can sometimes help you and a buyer work out what is called a “short sale” This means you sell your home for “short” of what the loan amount is, but the bank takes a loss on the loan just to move it off of their books
This is a process you need to have a real estate agent handle It takes a lot of paperwork You will need to show your financial need and write a letter explaining your circumstances There may be tax repercussions, so talk to your New Orleans tax advisor before deciding this decision is right for you
In Louisiana, the lending institutions go to court to file foreclosure proceedings Depending on the court schedule, it can take between 180 to 270 months to move through the process That is 6-9 months if the foreclosure is uncontested However, if the foreclosure is contested, or the borrower declares bankruptcy, it can take even longer However, once it has made its way through the court, the homeowner is given three days to bring the New Orleans mortgage current and if they do not, the property is advertised for 30 days and then sold at auction
It is very important to try to save your home and your credit A New Orleans real estate agent can be very valuable in education of the process of foreclosure and very helpful if you need to be able to sell your home and save your credit RE/MAX of Louisiana (http://www.remax-louisiana.com) can help you find New Orleans homes. Art Gib is a freelance writer.
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