If you don't yet know what a short sale is, the definition almost gives it away. A short sale occurs when the amount of the outstanding loans are greater than the amount for which the home could sell. This may be due to many factors, but most often is a result of a rapidly declining real estate market along with an owners inability to keep up with the mortgage payments.
A Short sale may be a way for your to avoid foreclosure and get out from under their loan with the lender by settling on the debt for less than what is currently owed. This is what has been coined a "short sale."
What's involved in a short sale?
First, you must assess the true market value of your property. Dalie Realty & Management's short sale expert will be able to give you a realistic idea of what your home will probably sell for based on a market analysis. Watch out for websites where a computer estimates your home's market value since they may not have complete information or know important things like neighborhood trends and current listings.
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When you're ready to get started, contact me through my site or e-mail me. I'm glad to answer questions you have about real estate short sales. |
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If you have determined that you can no longer make your payments and that you don't have enough equity to price your home aggressively, then you will probably facing a short sale or a foreclosure.
There are some important processes that must take place and time limits. If you late notices are coming in your mail and your phone is ringing off the hook, DON'T IGNORE THEM! While these calls are frustrating and embarrassing, they are your gateway to some financial relief! Tell your lender about your situation and ask them to send you a short sale package.
The lender should put you in contact with their loss mitigation department or homeowner retention team. Ask about their specific process. Some lenders will be more able to work with you than others. Depending on your situation, the lender may even be able to modify your loan and decrease the amount owed and/or reduce your monthly payments!
It is important to know that not everyone will qualify for a short sale. Don't take someone's advice and stop making payments if you can afford to keep making them. You will probably be assessed huge penalties and the bank may sue you for them. In a short sale, you must make full disclosure to the bank and if you have savings and or income to support the payments, you are going to be denied.
If you are faced with high credit card payments and a mortgage payments, you have a decision to make...it will be a difficult decision, but keep in mind that if you don't pay your credit card, your credit gets damaged. If you don't pay your mortgage, your credit is damaged and you have nowhere to live.
If you believe a short sale is in your best interest, consult with Dalie Realty and Management. We can speak to your bank on your behalf, guide you through the process, market your home and assist you in locating a new rental home that meets your budget.
