A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.
What is a loan modification?
Mortgage modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified.
What are my option to avoid foreclosure?
Loan Modification
Short Sale / Pre-foreclosure Sale
Forbearance Agreement / Reinstate your mortgage
Deed-in-Lieu of Foreclosure
Sheriff Sale Postponement
Refinancing Your Existing Loan
Bankruptcy
Sell Your Home
If I’m Foreclosed on, Can The Lender Come After Me For The Loss?
Yes
What does a Notice of Default mean?
A notice of default is a notification given to a borrower stating that he or she has not made their payments by the predetermined deadline. It dictates that if the money owed (plus an additional legal fee) is not paid in a given time, the lender may choose to foreclose the borrower's property. Any other people whom may be affected by the foreclosure may also receive a copy of the notification.
If My Lender Has Started A Foreclosure, Can I Still Sell My Property?
Yes, your lender would rather you sell the property than allow the Foreclosure to continue.
Your lender does not want to Foreclosure on you. Even if you have little or no equity in the property, the lender wants to find a solution.
This is why lenders agree to a Short Sales and accept a discounted payoff to satisfy your mortgage. In a Short Sale, the lender in most cases will pays all the closing costs; including title fees, attorney fees, county transfer fees and the real estate commission.
I am concerned about my credit, how will a Short Sale affect my credit?
The big key here is to avoid foreclosure. By nearly any measure, a foreclosure is the most damaging event your credit status can encounter - worse than bankruptcy. In the course of getting your short sale approved you may miss your mortgage payments, and these will show on your credit.
By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods and such) relatively quickly.
How much will I pay to do a Short Sale?
In most cases you will not have to pay anything, since the loan servicer pays virtually all sales costs including title & escrow, commission, and attorney fees.
How do I get started on a Short Sale?
Click on the link below to get started online.
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