Are you behind in your mortgage payments?
Are you possibly facing foreclosure?
You are not alone. Many are facing these same challenges.
You have come to the right place.
In the past, the major reason people went into foreclosure was the death or injury of the family’s primary breadwinner.
Today, the reasons are varied and cut across all segments of society−business failure, job loss, divorce, buying at the top of the market, 100% financing with declining market prices, ARMs that adjust upward−and the list goes on.
Normally, when you cannot afford a home, the best option is to sell it. But for many, this is not an option. If there is no equity in the home and you owe more than the property will sell for, selling is simply not an option.
There are several other solutions−forbearance, loan modification, or a deed-in-lieu−but the best is often a Professionally Negotiated Short Sale.
What is a Short Sale?
Simply put, a Short Sale is when a home-owner sells their property and the bank accepts less than what is owed on the mortgage.
Why would a bank accept less than the value of the mortgage?
In short, it saves them money.
If a lender or bank forecloses, it can cost them tens of thousands of dollars (the national average is $40,000 to $60,000), take months (sometimes years), and delay the return of funds from a non-performing loan. For them, Short Sale is often a welcome option.
Yet arranging a Short Sale can be complex. There are many challenges you (or your real estate agent) face doing a short sale yourself:
- You need a buyer willing to live with the uncertainty of the situation
- Everyone must wait 60-120 days for the bank approval
- The bank may still foreclose
- Someone must negotiate with the bank’s loss mitigator−obviously an experienced negotiator
The best solution is to have a Professional Short Sale Negotiator on your side.
Short Sale Success Factors
To have a successful short sale
- You, the seller, must be motivated to avoid foreclosure.
- If you are foreclosed on, your credit score will take a significant hit. It will be 4 to 5 years before you are able to recover your credit score or purchase another home. With a Short Sale your credit score hit is less and you could purchase another home in as little as 2 years.
- But it takes work to avoid foreclosure. Just as when you purchased your home, you worked closely with a mortgage professional to prove you could afford the property, with a short sale you must now use the same diligence to show them you are unable to continue making your house payments.
- The hardship must be permanent and not a temporary situation.
- It must also be a true hardship: a short sale is not a way for someone to get out of a bad investment. If you have other assets, retirement funds, or investments the bank will not allow a short sale.