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If you are facing long-term loss of income and tried to modify your loan and was unsuccessful you may want to consider reaching out to a professional to educate yourself about all of your alternatives. One alternative to a homeowner is the short sale transaction. The homeowner can hire a licensed Realtor at no up-front fees to market and sell ones house for what it worth – not what they owe at current market value.
Short Sale
If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.
Benefit: A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also keeps foreclosure off the individual’s public record, and in many cases will allow the homeowner to avoid a deficiency judgment. Borrower may qualify for another mortgage in as little as 24 months (as opposed to five years for a foreclosure).
Drawback: Short sales can be a trying process in which a homeowner is best served by contracting with a qualified real estate agent to guide the way.
It is best to work with a Realtor that is well versed with short sale transactions to ensure their success. Find out more about how to get started by contacting Eric Willams and his short sale team today! They have negotiated and successfully closed over two thousand short sale transactions and they can help you too!
