Is Short Sale Right for You?
Chances are you or someone you know is facing the possibility of foreclosure. Today, 1 in 3 homeowners in America has a mortgage that is underwater.
These are turbulent times. Now more than ever, it’s important you know all your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged. A short sale can be an excellent solution for homeowners to avoid foreclosure, allowing you to sell your home for less than what is owed on the mortgage. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes and the foreclosure debacle, banks and lenders have become much more flexible when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved. There is more good news for underwater home owners. The nations’ largest mortgage lenders are now offering relocation assistance programs to qualified home owners. Allowing you to exit your home gracefully.
Here is the definition of a short sale:
- A short sale occurs when an agreement is reached between you and your mortgage lender (or lenders) and you accept less than the full balance of the mortgage at closing. Thereby allowing the property to be ‘sold short’ of the total value of the mortgage.
- The lender will agree to allow you to sell your property for today’s fair market value usually for far less than you owe on the mortgage.
For homeowners to qualify for a short sale, they must fall into the following circumstances:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: “You may have more in monthly payments than money” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Fair Market Value –A real estate fair market value analysis, more commonly referred to as a comparative market analysis (CMA), is a detailed report examining the homes currently on the market, under contract, recently sold and recently expired, withdrawn or canceled to determine what a property is worth in the current market. A real estate agent often prepares a real estate fair market value analysis at no cost.
Short Sale Timeline:
What is a Short Sale?
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. While credit is also typically damaged much less than from a foreclosure, both often result in a negative credit report against the property owner.
How do I stop foreclosure?
How do I qualify for relocation money from the bank?
What happens to the mortgage deficiency?
Could I have IRS tax consequences based on the forgiveness of my mortgage debt?
Who pays the delinquent HOA fees?
Who pays the delinquent property taxes?
Understanding your options now could mean all the difference in your financial future. If you would like more information on how to qualify for a short sale, please contact Short Sale Innovations for a free consultation 866.548.9421 or firstname.lastname@example.org
After the Short Sale
Short Sale Innovations has a partnership with The Homeowner Assistance Division of The Law Office of Paul A. Krakser, PA offering many services to help you build and restore your credit and help you get back on the path to homeownership.
HAD also offers legal service in the area of foreclosure defense, debt settlement, deficiency settlement, deed in lieu, bankruptcy services and credit restoration. Please call for a free homeowner’s solution consultation toll free 877-332-1965.