Modesto Short Sales: Getting divorced, neither can afford, what to do?

Modesto CA - In this case I would recommend you sell the house. Now, if you are reading this blog, then you must be researching a short sale. Which means that you are probably upside down on the home. You have three options. Option #1: Let your lender foreclose on the home. You just stop making the payments and surrender the home to your lender. Option #2: Short Sale the house and get the debt wiped out. A short sale offers the following benefits over a foreclosure. Issue: Can I get a Future Fannie Mae Loan? Foreclosure: The current Fannie Mae Guidelines require you to wait 5-7 years before you can buy another home with a Fannie Mae Loan. Most other banks and lenders have the same or even stricter procedures. Short Sale: If are back on your feet 2 years after the short sale, then Fannie Mae guidelines allow you to get a loan from them. Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here. Issue: Can I get a future loan from any mortgage company? Foreclosure: Any future application will require you to answer the question, "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" you'll have to answer that question yes. Short Sale: You can state “No” because you short sold your home. You only have to say yes if the bank completes the foreclosure. Issue: Credit Score Impact. Foreclosure: Your score is typically lowered by 250 to 300 points, or even more. This often stays on your credit score for over 3 years. Short Sale: Only late payments show up. After a short sale, the mortgage is normally reported as "paid in full, settled." This lowers your score as little as 50 points if all other payments are being made. Oftentimes, this is off your credit report in as little as 12 months. Issue: Will I owe the bank any money for the shortfall? Foreclosure: Many lenders take 12-18 months to foreclose upon a property and resell it. This dramatically increases the loss and makes any deficiency judgment potentially bigger. Short Sale: Few lenders ask for a promissory note on a short sale. As an example, on one short sale, the bank lost over $120,000. They settled with the seller for $25,000 to be repaid over 15 years with zero interest. The seller's monthly payment was only $138,89. You can often even negotiate and have the promissory note waived. Option #3: Rent the property. This is a good way to earn some extra money. However, if you are upside down, then it is more than likely that the rent will not cover the mortgage. That means someone will have to write a check each month covering the loss. Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at danseider@gmail.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (209) 743-1061. Discover how other sellers successfully completed a short sale and request a free consultation by clicking here. Thinking about a loan modification? Our Modesto Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy. Thanks for reading this, Daniel Seider. Daniel is a Real Estate Daniel Seider at Big Trees Real Estate. Phone: (209) 743-1061. danseider@gmail.com. Climb Higher View My homes for sale at www.bigtreesrealty.com. Daniel Seider specializes in loan modification assistance and short sales in Modesto California. Modesto Loan Modification Help, Modesto Short Sales, Modesto Short Sale Realtor. Short Sale Realtor. Modesto CA Short Sales. Modesto Realtor.