Should You Consider a Short Sale? What Homeowners in Brookside, Waldo & Red Bridge in Kansas City Should Know – Short Sales Series: Part I

Should You Consider a Short Sale? What Homeowners in Brookside, Waldo & Red Bridge in Kansas City Should Know – Short Sales Series: Part I

Are you struggling to make your mortgage payments? Do you need to move and find somewhere else to live in order to cut your living costs? If you decide to sell, do you have enough money to pay the difference between what you owe on your loan and what it will sell for?

You may find relief with a short sale through your mortgage company. A Short Sale is when a lender accepts less than what is owed on the loan. It is also commonly referred to as a pre-foreclosure sale. This is the homeowner’s last change to sell the house, and resolve their mortgage issue before the bank forecloses on the house forcing the owners out and greatly damaging their credit. Yes, a short sale will damage your credit score and history, but the damage is greater with a lender forced foreclosure.

Do you qualify?

Many homeowners are faced with not being able to continue making payments on their mortgage loan because of a change in their financial picture. Perhaps it is a job loss, medical emergency or any other kind of reduction in income.

So, you may qualify if:

·         You are behind in your payments

·         You are going through a financial hardship (loss of income)

·         You cannot qualify to refinance your mortgage loan

·         You cannot qualify for a loan modification offered through your mortgage company

·         You owe more than your home is worth on the mortgage (and cannot sell if for the higher amount)

If you think you may qualify, or to find out for sure, you should call your mortgage company and explain your situation. The bank may have a loan modification program where you could lower your mortgage payments, or they may be able to work out loan terms that can help you while your financial situation improves, if possible.

You may determine that you simply need to sell your home and move elsewhere. Then, you should consult with an experienced real estate agent who works with other homeowners going through short sales.

What is your home worth today?

Many homeowners in Brookside, Waldo and Red Bridge in South Kansas City are facing lower home values in their neighborhoods. Homeowners who are in this tough position should make an appointment with a real estate agent to find out what their home is worth today.

It’s a simple, unfortunate fact that many people owe more on their houses than they are worth in today’s market. They cannot be sold without the homeowner coming to the closing table with money. Many times, money they don't have. So, homeowners are stuck. Their only option may be to negotiate through their agent with the bank to see if they will agree to short sale the loan and accept less than what is owed. It is important to determine from the bank if you will be held responsible for the deficiency after the home sales.

Check back on my blog for Part II, where I will share with you what to look for when hiring someone to help you through the process. Know that there are Short Sale Negotiators, attorneys and real estate agents who may offer to help you. In Kansas City, many homeowners are able to hire a real estate agent who can successfully get them through the process – with the bank paying their fee. I will share the details in my next Short Sale post.

Also, in Part III of my Short Sale Series, I will spell out the benefits of choosing a Short Sale vs. a foreclosure.

In the meantime, if you are looking for a real estate agent today in the Metropolitan Kansas City area, or in: Brookside, Waldo or Red Bridge in South Kansas City, feel free to contact me for a confidential and complimentary consultation.