How to Avoid a Foreclosure
How to Avoid a Foreclosure
How to Avoid a Foreclosure
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. Due to overwhelming changes in the market, mortgage companies and lenders are much more open to negotiating a short sale. In addition, recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
What is a short sale by definition? A sale that involves a homeowner who owes more on their property than what the current market value is.
A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then “sold short” of the total value of the mortgage.
In order for a homeowner to qualify for a short sale, they must fall into any or all of the following circumstances:
- Financial Hardship: There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall: In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency: The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
A short sale can be a complicated process that takes the expertise of an experienced professional. I hold the CDPE® Designation and I am ready to identify all possible options and when possible, assist in the quick execution of a short sale transaction on your behalf.
If you have questions or feel you may qualify for a short sale, please contact me for a free consultation. Understanding your options now could mean all the difference in the world.
602-864-1200 or TheTeam@RussoTeam.com
