If you are facing foreclosure you are not alone. You are devastated; you are feeling helpless, and you don’t know where to turn.
Foreclosure hurts! You can’t eat, you can’t sleep, you have trouble functioning!
The phone rings constantly, and you don’t even have to look at your caller ID to see that it’s your mortgage companyAGAIN! They are relentless! They interrupt your dinner, your family time, and your sleep!
Hundreds of thousands of people are in this terrible situation. There are many reasons people are in foreclosure, including unemployment, or circumstances like death in the family or divorce leading to financial distress. Many are in an adjustable rate mortgage (ARM) and the time has come for the interest rate to be adjusted. In many cases, it increases significantly and people are unable to make this much of a payment each month. When they try to refinance, to get a lower, fixed rate, they find that their home does not appraise high enough to pay off the existing mortgage.
This is a very tough situation to be in. You would love to just relax in the evening, enjoy your family and not be bothered with constant phone calls from your lender.
The good news is you have options and there are people who specialize in helping, no matter where you are in the foreclosure time-line. If you’ve done all you can and you just want out, you can walk away from this debt while satisfying your lender with a short sale.
Your lender might be willing to accept a lower price than what is owed on the home if you want to sell it for what it is worth in today’s market. Your lender is familiar with this and he will have an appraisal or value check done on your home before deciding to agree to a short sale offer.
You can work with a foreclosure specialist who has experience in working with short sales. The short sale negotiator will also perform a market analysis on your home to determine market value. They will help you submit other documentation to your lender to qualify you for the short sale option, including a hardship letter, financial statements, bank statements, pay stubs and other supporting information to show financial hardship and the declining value of your home.
The short sale benefits both the homeowner and the lender. The homeowner is allowed to satisfy their debt with a short payoff and not have a foreclosure recorded on their credit report. If the short sale negotiator is really doing their job, they will get a written release from the lender to the homeowner, on the debt owed, so that the homeowner is not forced to pay the deficiency.
If the lender is wise enough to accept a short sale offer, then he cuts his losses now, rather than risk the declining values of real estate causing him to be stuck with property that cannot be sold for near what he was owed. Chances are great that he will not sell the property at all; it will sit empty for months, become vandalized, and maybe even condemned and demolished for a total loss.
A short sale is one option to consider if you do not want to continue living in your home. With a short sale, you do not get proceeds from the sale; your lender is taking less than what his is owed and giving you proof that your debt is fully satisfied. A short sale is a good way out because it stops the foreclosure process, and saves your credit report from further damage. And don’t forget, once this is behind you, you can relax to dinner with your family without being disturbed by phone calls from your mortgage company.
|
|