Loan Modification

Can't afford your home? Consider a short sale...

For many homeowners, the simple fact is that continuing to afford their home just isn't possible. It's a difficult situation but that doesn't mean foreclosure is the only option. With foreclosures making headline news on a daily basis, it's easy to think that's the only option, but many homeowners are turning to short sales instead.

What is a short sale?

A short sale allows homeowners to sell their home for less than they owe. Say you bought a house for $300,000 and didn't put anything down. As the housing market stumbles, the value of that home drops to $250,000 and you are effectively upside down. On top of that, your adjustable rate mortgage just went up and you can't even afford to make your payments anymore.

In this scenario, keeping your home is difficult and a short sale is likely your best option.

How do you do a short sale?

As with any loss mitigation program, you should consult a company that specializes in such programs. There is a difficult negotiation process to get the lender to agree to allow the short sale and a loss mitigation specialist will be able to help you do everything right away. Don't delay in getting a company to work for you. Time is everything and every day that goes by reduces your chances of success.

Does the home have to be in default status to qualify for a short sale?

Not necessarily. As foreclosures continue to mount, lenders are willing to be more proactive. They can probably tell ahead of time where the situation is headed. The sooner they do something, the less they lose so there's great incentive for them to move quickly.

The lender isn't the only one that needs to move quickly. You can't afford to waste time. The proactive people are the ones getting help and finding solutions. Get ahold of a loss mitigation company today and get the problem worked out.

Who qualifies for a short sale?

You may be thinking a short sale is the answer to your mortgage troubles. It's possible that this is the case, but have you considered what qualifies someone for a short sale? Here are three common reasons someone should pursue a short sale.

Market value of the home has dropped. If you owe more than the home is worth, and many people are in this situation, a short sale is probably the best option.

The mortgage is in default status or could be in the near future. When the loan is in default, lenders are very motivated to do something. This is probably not a secret. What you may not know is that they are becoming increasingly receptive to the idea of working out solutions ahead of time. If they can make a determination that the home is headed for default status, they may agree to a short sale even before it's necessary.

The seller has a hardship. Hardship can be temporary or permanent. They come in various forms from job loss to illness on down to debilitating injuries. A loss mitigation specialist may be able to successfully negotiate your short sale based on a documented hardship.

You have a vacation or investment home. When times were good, home were looked at as great investment opportunities. Now, those same homes can be a drag on your financial well-being. If it makes no sense to keep the home, consider a short sale. It's the best option and is far more desirable than foreclosure.

Do you think you qualify for a short sale? Get ahold of a recommended loss mitigation specialist that knows how to properly negotiate a short sale on your behalf.