PRE-FORECLOSURE SHORT SALES

There are many situations where it is no longer desirable or practical to keep the home. Typical situations may include:

• Need to move to a different area for employment
• Divorce or other family situation
• Cannot afford the home, even with reduced payments offered by a Loan Modification
• In foreclosure with sale date pending
• Bankruptcy
• Other health or family issues

A foreclosure or bankruptcy will ruin your credit. A bankruptcy will be a negative item on your credit report for ten years and a foreclosure will be on your report for seven years. This may prevent you from obtaining financing on a different home, may prevent you from obtaining credit cards and other credit. Negative items on the credit report will always result in you paying a higher interest rate on anything you need to finance, such as a vehicle or other necessity.

One important item to remember is that the lender DOES NOT WANT YOUR HOME! This is the last option for the lender if you either do not pay or do not respond to lender’s correspondence. The lender is almost guaranteed to lose money if they foreclose on your home. The lender is a business, and they do not want to lose money!! 

It is very important for your future that you avoid foreclosure. The answer is a SHORT SALE.

What is a SHORT SALE? A short sale is the sale of a property for LESS than the current mortgage balance. This is a very typical situation in most parts of the country today. Here is an example:

You purchased a home some time ago for $200,000 and the value increase to $300,000. You originally had an 80% mortgage for $160,000, and later you entered into a second mortgage of $50,000 for some improvements. Let us estimate that the balance of the first and second mortgage is now $205,000. At one time this was great. Today, the home is only worth $190,000. In addition, a Realtor wants a 5% or 6% commission, plus there are other closing costs. To sell this home in a conventional manner, you might need to bring over $30,000 to the closing table!!

The SHORT SALE is the answer.  In a short sale the lender agrees to take less than the full balance you owe to them. They “release” you from further liability.

Most lenders will agree to a short sale under certain conditions. We need to convince the lender that they will lose LESS money with a Short Sale, than if they proceed with the foreclosure.

If you are near or in foreclosure, call us NOW toll free at 1-866-457-9567. We may be able to help.

Check our FAQ page for more information.

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