Say NO to Foreclosure!Â
Have you ever asked yourself the question, I canâ€™t afford to live in my house anymore, what can I do? What are my options? Do I have any? Â The answer is yes, you do have options! I am going to explain to you about the Short Sale process. What exactly is a Short Sale? What does the bank consider a â€œhardshipâ€? Why should I Short Sell my house and not let it foreclose? What can I do to just say NO to foreclosure?
First, you need to know what the term â€œShort Saleâ€ means.Â
A Short Sale is the process by which homeowners can sell their home and the sales proceeds do not fully pay off the existing loan(s) and the lender(s) accepts a discounted (â€œshortâ€) payoff to satisfy the loan.
That is accomplished by providing proper documentation to the lender(s) to convince them to reduce the payoff balance to allow the sale. If the sale is approved, the home can be sold for a price lower than the total debt on the property without the seller having to come up with cash to cover the entire shortfall.
Now, ask yourself this question, is a Short Sale right for me?
Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, your lender would prefer to settle the matter withÂ youÂ as opposed to taking the property through foreclosure.
As you consider the option of pursuing a Short Sale, remember your lender is looking to limit any potential loss on your loan. By completing a Short Sale, your lender has arrived at a solution that is, for them, much better than a foreclosure.
Bottom line, your lender wants to work with you!
Iâ€™m sure youâ€™re wondering how much this process is going to cost you out of pocket, right?
Nothing! No really, in most cases, you will pay literally no sales costs if your lender approves the Short Sale. All commissions, title and escrow fees, are paid by the lender as part of the Short Sale approval. Remember, the lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure.
The biggest question we face on a day to day basis is people, just like you, wondering how a Short Sale will affect my credit?
The key here is to avoid foreclosure. In my previous blog,Â Get all of your short sale answers here!, I explain that a foreclosure on your credit is the most damaging thing you can do, actually worse than a bankruptcy. By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods and such) relatively quickly.
Â The question you should be asking yourself now is whyÂ WOULDN'T IÂ Short Sale my property? The advantages are so much greater than if you just stop paying and let the lenders and banks foreclose on your property. Just say NO to foreclosing on your property!