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 is devastating! You have trouble eating, sleeping and just 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 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.
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.
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.
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.
A short sale is an option when you feel that there is no reason to or no possibility of keeping your home. When you sell it on a short sale, you do not expect to get any of the closing proceeds. You do get the benefit of satisfying your mortgage debt and preventing further damage to your credit report. You also get to put a stop to the relentless phone calls and intimidating letters from your lender, not to mention all the letters you may be getting from attorneys or foreclosure consultants offering their services. - 15224
Foreclosure is devastating! You have trouble eating, sleeping and just 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 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.
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.
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.
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.
A short sale is an option when you feel that there is no reason to or no possibility of keeping your home. When you sell it on a short sale, you do not expect to get any of the closing proceeds. You do get the benefit of satisfying your mortgage debt and preventing further damage to your credit report. You also get to put a stop to the relentless phone calls and intimidating letters from your lender, not to mention all the letters you may be getting from attorneys or foreclosure consultants offering their services. - 15224
About the Author:
This article was written by Eileen Gill, who specializes in helping people who face foreclosure. Eileen's passion is helping people save their credit by selling their home with a Short Sale to satisfy their mortgage and prevent having a foreclosure on their record. Eileen understands the foreclosure process and the concerns of homeowners facing foreclosure; she has helped hundreds of people in various stages of the foreclosure process.
