Foreclosures remain at the forefront of the several problems affecting the economy and the real estate market.  The government has ramped up its efforts to stop foreclosure, most notably by passing the major housing legislation bill designed to protect Freddie Mac and Fannie Mae and also prevent yet another homeowner from becoming the next foreclosure statistic.

More often than not, homeowners who end up defaulting on their South Florida homes end up foreclosing and going through the whole legal process, assuming they didn’t just throw in the towel and walk away like many others have done.  There are other options available that may ease the otherwise unpleasant process a little and remove most of the legal headaches that may arise.

You’ve likely heard the words “short sales” used a lot these days.  Realtors have been taking advantage of this growing trend where the foreclosure property is sold to an interested buyer for less than the amount that was owed on the mortgage.  This process largely removes any responsibility on the original homeowner’s part and also avoids a drawn out legal process.

The second option which also gets rid of the lengthy legal process involves the homeowner selling the property back to the bank if they know they’re going to end up in foreclosure anyway.  Like short sales, the bank takes ownership of the home for less than what was owed on the mortgage.

The homeowner’s credit score will take a considerable hit but the tradeoff of the two aforementioned options is they leave the homeowner with a clean slate and they do not have to endure the ins and outs of the traditional home foreclosure process.  While finding a mortgage lender willing to lend to risky borrowers will prove tricky, should the former homeowner decide to move into a new Miami Beach home, the prospects of not being instantaneously turned down or having to wait long are better.