Real estate red tape is well known for taking a long time and it often keeps people from pursuing various forms of action. However, what if you could prepare everything before you need it and have it ready to go?
The processor would then be able to start the process and move ahead without any delays. For a homeowner who is trying to avoid foreclosure, speed is especially important because every day counts in terms of catching up financially.
Obviously, to do this, you need to first become aware of what you need. In order to make this easier for homeowners, the following list is a great place to start.
1) A hardship affidavit lets you verify the reasons why you’re delinquent and what is keeping you from making your payments on time. By putting this on paper, you’ll also avoid having to explain yourself over and over. This one document can keep you from having to answer several questions as the processor can refer to it whenever necessary.
2) A list of all your current expenses will also be needed. This list should include your regular monthly bills, your credit cards, additional expenses such as childcare and health insurance and anything else you pay money towards on a regular schedule.
3) The last two years of your tax returns should also be included. This will show the processor what your income has been in the past compared to what it is right now. If you own your own business, you may also need to include the supporting documents such as Profit-and-Loss statements and Balance statements.
4) While taxes work well for verifying your past income, you also need to include proof of your current income. This lets them put your income level into a certain group or category and move you through the process faster. Without this information, they will not be able to proceed with the filing and find out what you qualify for exactly. Make sure you also include any supplemental income that you don’t necessarily work for.
5) Along with this, you’ll also need to let them know about any deposits that have been made into your account. This can be done if you check out your recent bank statements and highlight each one so they are visible and easy to see.
6) If you have homeowner’s insurance, include copies of the declarations. This will tell them what kind of coverage you have and how much that is costing you each billing cycle.
Once you have all these documents together, you’ll find the process for getting relief and possible avoidance of a foreclosure goes much smoother. If you have trouble finding any of these documents, you can also talk to a finance officer at your bank. They will be able to answer any questions you may have and get you through it with far less stress.
The author of this article is a contributor to Open Offer a real estate resource for Rancho Santa Fe Luxury Homes.