I have been working in avoiding foreclosures and short sales for over three years now. In the early days of this crisis, I would spend a lot of time describing the definition of a short sale to Realtors and home owners! These days, most know the basics of short sales and I talk with them about the details and benefits of going this route.
I do real estate and investment work nationwide. I meet with clients and look for methods of dealing with less income, mortgage payments going up, and their home value dropping.
Here are some solutions: Most people start talking with their bank to get a mortgage modification. This can be good, but often the reduction in monthly payment is not enough to make a difference. The banks often deny the modification because of too little income.
The second thing people may want to look into is a legal defense from the pending foreclosure action. This has been successful in delaying the foreclosure for months or even years!
Most of the time, even with the first two options, it will eventually come down to either a foreclosure or a short sale. Most agree the short sale is much better than a foreclosure. It leaves your credit in much better shape and often dismissed all that may be owed to the bank!
A lot of people are in the “standard” situation. This is usually someone who has a home which is worth less than the mortgage balance, the mortgage payments are rising, and has less income coming in. They usually want to start with a modification and try to stay in their home. This is a good first step. The final result can be a lower payment, but not low enough.
If these don’t solve the problem, you can move to a short sale. This will allow negotiatiation with the bank and a sale close to todays market price. The owner can find a cheaper way of living and a fresh start. The deficiency amount and tax can usually be dismissed! The short sale is much better than a bankruptcy or foreclosure! They can leave the owner with money that still has to be paid over many years and tax liabilities! There are many lawyers that can help. Please comment here, and ask me questions via email or phone. We continue to update our blog and website for more information!
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