Springfield Short Sales Are Increasing - Alternatives To Foreclosure
Many Springfield sellers are finding it harder to make their mortgage payments -- and may of them are headed in default because they don't know they have alternatives to foreclosure. Home owners that can no longer make mortgage payments, refinance or work out financing alternatives have options for sale:
- Sellers can market their homes and sell before foreclosure.
- Give a deed-in-lieu of foreclosure to the bank or let the bank foreclose.
- Or sellers can can negotiate with the bank on short sales before the home foreclosure is complete.
Short sales are increasing rapidly in the Springfield real estate market. Negotiating with the bank to accept less than the full loan amount is a much better alternative than foreclosure.
Some of the benefits include:
- Sellers will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years.
- Know that you did the right thing, by trying to sell versus giving up and letting the home be foreclosed.
- Some banks are now offering cash back to sellers at closing for moving expenses.
As a real estate agent, I can not give you legal and tax advice before making a decision to short sale your home. Consult your tax accountant or attorney.
Sellers who stop making mortgage payments -- and those headed into default who cannot refinance or work out financing alternatives with their lender -- have three options for sale: sell the property before foreclosure is final, give a deed-in-lieu of foreclosure to the bank or let the bank take the property in foreclosure. Buyers and investors often try to negotiate with the bank on short sales before the home foreclosure is complete, especially if the home is worth less than the outstanding mortgage balance.
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