Assisting You With A Short Sale

If you are considering a short sale, we can do more for you than just sell your home. With today`s housing crisis, short sale may be an option you should consider before allowing the home to go into foreclosure.  Some homeowners may qualify for loan modification. Others may need to go for a short sale of their home in order to avoid the negative stigma of foreclosure that can haunt them for years to come. If your home goes into foreclosure, you may not be able to purchase another home for seven years. If you do a short sale, that time period will be shortened.

How the Short Sale Works

The short sale is only for those homeowners who are facing a hardship. You must also have an upside-down mortgage, which means that you owe more on the home than the home is worth. Examples of hardship include unemployment or severe reduction in income, divorce, bankruptcy, medical emergency, or death of a co-homeowner.

The short sale involves selling the house at today`s market value while your lender agrees to accept that lower value for the home. Short sale negotiation process with the bank is a very complex and time consuming process. We can work as a go-between you and the bank to help you successfully negotiate a short sale of your home. The bank will work with us regarding their terms for a successful sale.  You will need to provide your bank with a letter of authorization so that we may speak with the bank.  

Benefits of the Short Sale

When you are at risk of foreclosure, the short sale is a viable option. The benefits of a short sale include:

  • Lesser effect on your FICO credit score than with a foreclosure. A foreclosure can drop your credit score by as much as 400 points. Although each lender reports a short sale differently to the credit bureau, the effect on your credit will be that of a mortgage paid in full. Only the late payments prior to the short sale will affect your overall credit score.
  • You will have no mortgage payments to make, unless you choose to keep making them.
  • You retain dignity in knowing that you sold your home as opposed to losing it to foreclosure.
  • Under Fannie Mae Guidelines, you can buy another home in as little more quickly than with a foreclosure.  

Every day that you don`t do anything is another day that you move closer and closer to foreclosure. To find out more about stopping foreclosure and going with a short sale, contact us now!