Roughly 1 out of every 5 homeowners in the State of California are currently in foreclosure or are delinquent on their mortgage payments.
What can be done? Although distressed homeowners do have OPTIONS, most of them end up in foreclosure. They either don’t think they have a choice or they just don’t act quickly enough to avoid the bank taking their home.
One of the options for the distressed homeowner is a Short Sale. But is a short sale the right for you? To answer that question, many factors have to be considered. Most importantly:
Your Financial Status. The banks are more likely to agree to a short sale with someone going through financial hardship. Loss of job, increased mortgage payments, death in family, etc…This is not really that tough to prove in today’s economic climate.
Your Homes Equity. Obviously you will have to owe more than the value of the home. Most homeowners that have bought a home in the last 4 years are “upside down”.
But qualifying for a short sale doesn’t necessarily make it the right choice. You have to consider your future and how this decision will affect your short and long term goals. That is why it is imperative that you speak with qualified professionals that can help you make the right choice.
Here are some questions to consider that a qualified Realtor can help you answer:
Q. What types of hardships would a lender generally consider conducive to a short sale agreement?
Q. What are the tax consequences of a short sale?
Q. What is the Mortgage Forgiveness Debt Relief Act of 2007?
Q: What effect will each alternative have on my immediate, mid-range, and long-term credit?
Q. How do I know if my property and I may be considered for a short sale?
Q. If a lender agrees to the short sale option on my property, can the bank still proceed with a foreclosure?
Q. How would I initiate the short sale process?
Q. How would multiple liens on my property impact short sale approval?
Q. Am I responsible to continue to make mortgage payments if I have intentions of applying for a short sale on my property?
Q. Does a “Listing Agent” represent me (as the homeowner) or the bank if I have intentions of gaining short sale approval from the lender?
Q. Is there a real estate commission paid in a short sale and, if so, who pays it?
Q. On average, how long does a short sale process take?
Q. How important is the short sale package or kit when applying for a short sale to a lender?
Short sales give you an option other than foreclosure. If you are in default on your mortgage or have trouble making the payments, we can help. We offer expertise in The Short Sale Process and can help the distressed homeowner make the right choice.
Fill out the simple form below to receive a FREE short sale analysis.
Posted In Featured, Real Estate News
This entry was posted on Sunday, November 22nd, 2009 at 12:21 pm and is filed under Featured, Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.