Ideas on handling a Short Sale :
Stressed out! Worried about not making timely payments on your mortgage! Do you have questions but not many ideas on handling a Short Sale. Many homeowners who bought at the peak of the market in 2006-2007 could be faced with a Short Sale situation. A Short Sale is when a homeowner owes more money to lien holders or bank than their home is worth. This may cause a decision by the seller to ask the bank for debt relief, aka-Short Sale, keep making payments even though their home is under-water (Seller owes more than the home is worth) or the seller walks away and hopes that the bank will not come after them in the future. Most banks will not just let you out of the loan and write off the debt owed. The seller must show to the bank hardship that would cause the homeowner to default on their loan. Some banks may give sellers a loan modification to help sellers stay in their homes.
A loan modification is based on hardship. Did you lose your job? Are you going through s divorce? A bank will ask for proof to verify your hardship to why you can not make payments to your current loan. I know banks have given a loan modification for some homeowners at 2% interest rate for the life of the loan but not all banks are equal, each bank is different and each scenario is different.
When I was 17years old, my parents had their home taken away from us in a foreclosure. I understand how a seller feels during tough times. I hope some of these ideas on handling a short sale helps so sellers can keep their home or get out from under the current debt situation.
The CAR or California Association of Realtors has a great website that will give homeowners ideas on handling a short sale. This will be a good place to start. http://www.shortsalescalifornia.org
The NAR or National Association of Realtors has a good website that will give homeowners ideas on handling a short sale. http://www.realtor.org/realtors/basics_short_sales?wt.mc_id=rd0041
This is a great C.A.R. Q & A about ideas on handling a short sale. http://www.car.org/legal/foreclosure-short-sale-folder/short-sales/.
Homeowners can get FREE counseling and ideas on handling a short sale. Go to www.hud.gov or call HOPE Hotline: 1-888-995-HOPE 24/7
Additional info: http://www.youtube.com/watch?v=0JL7ICPeUMo
The most important advice I can give you while helping you get the correct ideas on handling a short sale is seek advice of an attorney and/or an accountant before deciding what to do. There could be possible tax and/or credit consequences involved with your decision. I want to make sure that you make the best informed decisions so you do not get any unexpected surprise in the future.
New info from USA Today 11/2/2011- http://independentforeclosurereview.com. You may be eligible for a review.
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