Avoid Foreclosure and See if you Qualify for a Short Sale2 years ago
You do not have to lose your home and you don’t have to take the ten year hit on your credit report that a foreclosure will bring you. Shorts sales are one of the options to foreclosure that you may be eligible for if your bank agrees to let you do it. It involves selling your home for less than what you owe on it, a common practice today for those who bought homes when they were going up in value and watched them plummet as the bottom fell out of the housing market. The property values are rebounding now but many homeowners are so far upside down that they need to take drastic measures.
Hiring a certified short sale professional to negotiate a short sale for you is one of the best things you can do for your credit rating if you are in the situation described in the paragraph above. Someone who has experience in negotiating terms with a bank or mortgage lender will get you the kind of deal you need to make sure the short sale will bring you all the way out from under. The main point is the forgiveness of the remaining debt owed after the sale is concluded. Without that assurance you’ll still be behind.
If you have fallen behind on payments because of an adjustable rate mortgage or due to being unemployed in this depressed job market you are most likely eligible for a short sale agreement from your bank. If there has been a significant change in the household income like a cutback in hours or a layoff to a spouse or partner you may be eligible also. The bank will evaluate your payment history and if they find you’ve been doing business in good faith they will most likely negotiate an agreement with your short sale realtor.
A short sale is an option for those who are in real trouble and have no other choice. Banks are not in the business of forgiving outstanding debt but they are willing to do it in the interests of recovering at least some of what is owed to them. The state of the real estate market right now puts the homeowner in a much stronger position to bargain, but make sure you have an expert by your side when you do it so you are assured of getting the best deal possible.