Basically, it's when a homeowner cannot pay the loan on their mortgage and the bank sells the property at a moderate loss. This is the best way to avoid a foreclosure and also gives the buyer a better discount (most of the time) than if the property went out on the market as a regular sale. It’s pretty much a win/win situation for all three parties:
* The bank doesn't have to pay the hefty fees of a foreclosure and have another property in inventory.
* The homeowner doesn't have to make any more payments, their credit report won be as bad as a foreclosure and they can be able to buy another home immediately (if they are payment current) or within 2 years.
* The buyer gets a great deal on a new property that is discounted lower than current market value.
This is why I always stress the point:
DON'T GO INTO FORECLOSURE... DO A SHORT SALE!!!
* Retain some dignity knowing you sold your own home
* You won't suffer the social stigma of the "F' word (Foreclosure)
* No mortgage payments to make... Unless you choose to
* You will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years
* If your credit report doesn’t reflect a 60 or more late payment, under Fannie Mae guidelines you will be able to buy a house immediately!
THE SOONER YOU PUT YOUR PROPERTY ON THE MARKET IN A SHORT SALE, THE MORE TIME AND MONEY YOU WILL SAVE.
Experience and skill matter more now than ever...
If you have any questions, feel free to call me directly, anytime
(212) 300-3919
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