Minnesota homeowners struggling with mortgage payments are not alone. OneÂ out of ten homeowners in the nation are currently delinquent on their mortgage or they are facing the foreclosure process. It is important homeowners know about the options that are available to them.
TheÂ Making Home Affordable (MHA) program is being managed by the Treasury Department and Fannie Mae. It covers more than 85% of mortgage loans, including loans owned or guaranteed by Fannie Mae or Freddie Mac, FHA and loans managed by about 50 of the major servicers. For these loans, the new MHA policies and processes are mandatory: This is an attempt to simplify and standardize the short sale process. The links below are provided to distressed homeowners to help themÂ in their decision making process:
If a homeowner is considering aÂ short sale, a short saleÂ allows the financially challenged homeowner to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With dropping home property values, this can save many homeowners from foreclosure and even bankruptcy and a short sale is less costly forÂ the lender than a foreclosure.
Bob Elliot - RealtorÂ® Â
* It is always good practice to consult your legal or tax advisor on your current situation