Short Sale (definition): a sale of real estate in which the proceeds (sales price - costs of the transaction) from the sale fall short of the balance owed on a loan (mortgage) secured by the property sold.
Upside down on your Mortgage?
Is your House under water? Facing Foreclosure?
Here are your options:
1. Do Nothing – If a homeowner does nothing, they most likely will lose their home to foreclosure. This is not a good option; time is of the essence. They should think through the situation, make a decision and take action immediately.
2. Payoff/Refinance – With this option there must be equity in the home.
3. Reinstatement – Paying the entire default amount: missed payments plus interest, attorney fees and late fees.
4. Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. To qualify, the homeowner must prove to the lender that he or she has fixed the problem that caused the late payments.
5. Forbearance – The lender may be able to arrange a repayment plan based on the homeowner’s financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required to show that the homeowner is able to meet the new payment plan requirements.
6. Partial Claim – This would require a second loan on the property to include back payments, costs and fees.
7. Deed in Lieu of Foreclosure – The homeowner can give the property to the bank before the bank forecloses. Banks generally require the home be well maintained, all mortgage payments and taxes must be current.
8. Bankruptcy – This option can liquidate debt and /or allow more time.
9. Sale – If there is no equity in the property, a Short Sale, also known as a pre-foreclosure sale, can possibly be negotiated with the homeowner’s lender to reduce the loan amount so the sale can be completed.
You can get out of your mortgage and home with minimal damage to your credit and avoid a foreclosure by doing a “Short Sale”
Prudential California Realty Short Sale Team
We are committed to helping homeowners avoid a foreclosure that damages their credit. We are experienced, professional Realtors who specialize in handling short sale transactions. If you are having difficulty making your mortgage payment, call or email me today to see if a short sale can help you. We market and sell properties while helping to negotiate with your lender to relieve you from burdensome debt before a foreclosure happens. There is Nothing worse than doing Nothing. Being proactive and responsible by taking immediate action will cost you Nothing. Call or email Today.
Doug Reynolds & Glenn Fantazia
Short Sale Team
Links:
Use of short sales on rise in Sacramento housing market
Obama Administration Announces Financial Incentives and Uniform Process for Short Sales
Uniform Process for Short Sales will help struggling Homeowners
We are here to help. Call or email today. A short sale can save your credit from a foreclosure hit and also avoid the emabarrasment of losing your home.