If you are so financially bound by your mortgage as to be considering foreclosure or bankruptcy, you need to also consider a short sale too. If you currently owe more than your property is worth, you can contact a short sale expert and see if you can qualify for a reduced pay off amount and a short sale on the home or property.
This is not as complex as it might initially seem. The first thing to do is to determine if you actually qualify for such an option. Usually this will mean that you have to be able to demonstrate a valid reason for financial hardship. For instance, many people that qualify for have lost their job or primary source of income, are going through a divorce or separation, have suffered a catastrophic illness and are dealing with medical expenses, or who are in a home that needs a lot of repair for which the funds are unavailable. Generally, this type of sale can be viewed as an option for those who must sell rather than those who actually want to sell their homes.
Interestingly enough, the global and national financial problems have led to lenders being much more lenient and amenable to the entire process. This is because it will usually feature the participation of an expert who not only negotiates the price, but tends to also have a buyer already in place.
When you realize that a bank which takes a home in a foreclosure spends an average of $58,000 on the process, and then must take over the care, upkeep and maintenance costs for the home, it is easy to see why they will settle for this type of sale.
Once the process is started the bank or lender can still pursue standard collection activities, but they usually cannot foreclose on the property. Once the short sale is done, any and all collections activities cease, and the notice of the short sale is put on the owner's credit report.
It is always better to do the short sale instead of a foreclosure or bankruptcy for many reasons, and chief among them is the fact that most consumer credit agencies allow the short sale notice to be removed two years after completion. A foreclosure or bankruptcy on the other hand, remains in place for an average of seven to ten years afterward, and this can cause even further financial difficulty.
We Have Saved Over 1000s Diego Families From Foreclosure Through Successful Short Sale Closings And Loan Modification! For A 15- Minutes FREE Report on Foreclosure Vs. Short Sales, Call 760-752-1800 or Visit our website www.shortsaleofsandiego.com for free consultation or you can simply email us at info@shortsaleofsandiego.com
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We Have Saved Over 1000s Diego Families From Foreclosure Through Successful Short Sale Closings And Loan Modification! For A 15- Minutes FREE Report on Foreclosure Vs. Short Sales, Call 760-752-1800 or Visit our website www.shortsaleofsandiego.comfor free consultation or you can simply email us at info@shortsaleofsandiego.com
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