Often Sellers think that foreclosure is inevitable and their only option when they have difficulty making mortgage payments. They don't know which way to turn or their choices. Before resigning to foreclosure, one solution may be for Sellers to consider listing their home for sale as a short sale. There are several combining factors which may determine whether a Seller's property should be considered for a short sale. If the answer is Yes to the following questions, one may want to pursue this option:
- Are you having difficulty making your monthly payments or facing foreclosure?
If you are having trouble making mortgage payments and refinancing or loan modification is not an option, short sale can help avoid foreclosure. A short sale may be considered once a Seller falls 1-3 months behind in payments. When a Seller is 60 days behind in payment, the Lender usually sends a notice of intent, which is a formal notice to the Seller of the intent to seek specific relief in an action. It is notification of the intent to begin the foreclosure process, in this case.
- Do you owe more on your property than it is actually worth?
If the amount you owe on your mortgage exceeds the current market value of your home, short sale may be a good option because it allows the home to sell for less than what you owe. Property depreciation alone does not qualify you for a short sale; other factors must also be considered.
- Do you need to get your home sold quickly?
If you are in a "must-sell" situation along with being behind on payments and owing more than the home's value, short sale may bring you a buyer quicker and help you sell before reaching foreclosure.
- Are you having a financial hardship?
Sellers may qualify to sell their property in short sale if they have faced a recent financial hardship. Hardships include:
- Job loss
- Business failure
- Divorce
- Death of Spouse
- Major Illness
- Medical expenses
If you have any other questions about a short sale and would like guidance, please feel free to contact me.
To search for short sale homes in Carmel-Westfield visit:
Comments(4)