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 drives you crazy! The mortgage company, again! Asking when you will be catching up your past due payments. They don’t care that you just sat down to a meal with your family or if you are sleeping.
Hundreds of thousands of people are facing foreclosure or are in various stages of foreclosure today. Many are stuck in a mortgage they can no longer afford to pay due to the resetting of the ARM or Adjustable Rate Mortgage. Refinancing is difficult or impossible because of financial hardship and declining real estate values. You cannot be approved to refinance if you owe more than the home is worth in today’s market.
This is a rough situation for anyone to be in. You’re overwhelmed and would like to just relax and go back to the way it was before, when you could come home from work and enjoy your family without the annoying 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.
A short sale is where your lender agrees to let you sell the house for less than he is owed if the market justifies the short payoff price and you qualify by showing financial hardship. Mortgage companies have a short sale department for handling these transactions.
If you are considering a short sale, you should work with a specialist who has experience in working short sales. A good short sale negotiator will help you with the process of compiling the paperwork for the bank and they will do a comparative market analysis on your home to support a short sale offer.
A good short sale negotiator provides a great service to the distressed homeowner and the lender. They help the homeowner by helping them satisfy their lender with a short payoff. In addition, they will ask that the lender provide the homeowner with a document of full satisfaction so they do not come after them for the deficiency. A short sale prevents the foreclosure from proceeding and becoming a part of your credit report, resulting in damage that takes many years to repair.
The lender benefits by cutting their losses and taking what they can get now, rather than incurring the additional legal and financial expenses of foreclosure, while market values continue to plummet. If they wait out the redemption period, which varies from state to state, and evict the homeowners, fix the home to make it marketable, by the time the property sells, chances are good that it will be worth even less and their loss will be greater.
You should only consider a short sale if you feel that you have no other options. If you owe a lot more than your home is worth and you cannot meet your mortgage obligations, maybe it’s time to just walk away and sell the home for whatever you can get your lender to accept. You just lose more each day as you try to cover all the expenses while foreclosure is looming. A short sale saves your credit report from having a foreclosure on it while satisfying the debt to your lender. You also get to put an end to the harassing phone calls and letters from debt collectors while you make a new start.
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