Losing your home to foreclosure due to an inability to keep up with your monthly mortgage payments is one of life's most unpleasant experiences. It is also an event that keeps on affecting you long after your home is gone by devastating your credit score. Regrettably, most people cannot be 100% sure that they will remain safe from foreclosure because they can't foresee the unexpected. Occurrences such as serious illness, a major accident, divorce or job loss can happen to anyone. So it's a good idea to understand the available alternatives should the worst occur.
OF ALL AVAILABLE OPTIONS, FORECLOSURE IS THE WORST.
The inevitable result of a foreclosure is the lender taking your house. Not only will you lose your home, but the lender can get a judgment against you for the arrearages you owe plus his costs for the foreclosure action. If that isn't enough, your credit report will be in terminal condition for many years to come, worsening an already bad financial situation and making it very difficult to obtain any other kind of credit. There is no upside to foreclosure. It should be avoided at all costs.
CONSIDER A SHORT SALE WHEN FORECLOSURE SEEMS INEVITABLE.
A short sale is a popular option for home owners mired down with financial problems. in this case, you would sell your home for less than what you owe your lender; the biggest problem you will face is getting your lender to agree to a short sale. (I have had great success at getting lenders to cooperate.) Experts advise pursuing this option the minute you realize that you are falling behind in your payments and most likely won't be able to catch up. The longer you wait and the greater the amount you are in arrears, the less likely it becomes that your lender will be willing to discuss a short sale.
SHORT SALE HAS DISADVANTAGES TOO!
While a short sale will save you from foreclosure, it will also have a negative effect on your credit by lowering your credit score. This can be overcome more quickly than the black mark of a foreclosure, especially if you manage to retain one or two credit cards and keep them current. Perhaps equally distressing, the Internal Revenue Service frequently deemed the difference between the mortgage balance and the amount realized from the short sale to be taxable as income to the debtor. However, new federal legislation called the Mortgage Forgiveness Debt Relief Act of 2007 that went into effect on January 1, 2008 addresses that issue.
YOU NEED AN EXPERIENCED SHORT SALE AGENT!
Your lender will only negotiate if it is to your disadvantage. You will need someone on your side, someone who will be there for you and understands how to negotiate with your best interests in mind. Half of my business has become short sales. I have the experience and know-how to represent you successfully throughout the short sale process. Remember, your lender will pay the closing costs, which includes my commission and other fees. If you find yourself in a difficult financial situation do not ignore it and hope things will get better. CALL ME TODAY! (562) 201-1026
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