Due to the recent economic downturn in the U.S. many homeowners are losing their homes to foreclosure and many more are falling behind on their payments.
Don’t let this happen to you. There may be a solution and help for homeowners that take the right action. One of the actions you can take is to contact me. a short sale specialist, who can try and negotiate a successful short sale with your lender today and save yout credit.
If you are headed toward foreclosure, you need to know your options. Once you get behind on your mortgage, the clock is ticking. The sooner you decide your course of action, the better chance you’ll have at stopping the bank from foreclosing.
Understanding a short sale
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurswhen a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency. In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/deptor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is “doing the other a favor”, a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than foreclosure or continued non-payment would entail. Borrowers are able to mitigate damage to their credit history, and partially control the dept. A short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.
Why should I do a short sale
A short sale represents a solution for a homeowner who cannot pay his mortgage payment, due to some type of real hardship. It is often a better option than a foreclosure or bankrupcy declaration.
Benefits of a Short Sale
- If you have any equity, it will retained
- You will avoid having a foreclosure on your credit report.
- Avoid the humiliation of a public sale.
- You will be completing your original commitment with integrity.
- Lender may postpone foreclosure proceedings if they know you are actively trying to sell your home.