Choices are limited for home sales these days if you do not have a mortgage already paid off or have a lot of equity in the home. If you still have a mortgage, one of the three scenarios bellow is possible when must move out of your home:
Your home goes into foreclosure and gets sold to another buyer by the bank
No one purchase the home after foreclosure and it become a bank-owned property knows as a difficult.
You sell your home to the highest and best bidder similar to a regular sale but requiring bank approval before closing (short sale).
If you owe more on your home than the home is worth, and don't want to declare bankruptcy (because it won't solve your financial problem), you can hire a short sale real estate specialist to market the property and negotiate a short sale agreement with your lender or mortgage servicer. A short sale allows you to avoid foreclosure and minimize the damage to your credit score. You may avoid a deficiency judgment if your lender forgives your mortgage debt in its entirety according to the terms outlined in The Mortgage Debt Relief Act of 2007. Also a short sale keeps a foreclosure off your credit record. Fannie Mae has reduced the mandatory waiting period to establish credit history after a short sale to 2 years. This waiting period after a short sale is lower than the required 5-7 years following a foreclosure.
In this continues drooping value market owners have to be ready to confront difficult decisions regarding their financial life when they need to move out, So If you find yourself in this position, and you may begin to think that there is no way out of this mess and that you will have to foreclose on your home. You do not have to take this drastic step.
You should look for a licensed real estate professional in your area who has experience handling short sales and distressed property sales. He or she should also have an experienced negotiator on his or her team to negotiate with the lenders. The expenses of the real estate agent and negotiator will be paid by the lender. You can also get up to $3000 from the mortgage servicer to help cover moving expenses.
For more information, visit Fannie Mae's Home Affordable Foreclosure Alternatives website at https://www.efanniemae.com/sf/servicing/hafa/ and Know Your Options website at http://www.knowyouroptions.com.
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
Keeping the home..as some suggest..could work..if all is amicable and you wish to play the waiting game.
You need to consult with a professional...familiar with short sales..look for the CDPE..Certified Distressed Property Expert..though this by no means makes one an expert as the designation implies..it does mean they will typically be more well versed than those without. If I can be of assistance..feel free to contact me.
Erik J. Weisskopf, ABR,CDPE,CRS,GRI
You need to do what is best for you in this situation. Although I can understand the advice to hold on to it until the market goes up, if you are in the middle of a divorce, that might not be a feasible option. There could also be tax implications to turning your home into a rental and you will need to consult a CPA for more information regarding that. Not to mention that, although the market is on the rise, it could be 20 years before you regain value, and this might not help with parting ways and moving on with your life.
You and your spouse should sit down and figure out the best option for you both to proceed. Although a short sale might not be ideal, there are reasons for them, and divorce does qualify as a hardship depending on your cash situation.
If you are interested in gathering more informatino about the details and process of a short sale, I would be happy to sit down with you or talk over the phone. Whether it is the best option for you is hard to say until you have all the details you need to make an informed decision!
email@example.com or 571-215-7847