WHY WOULD A BANK AGREE TO LET A BORROWER OFF THE HOOK FOR LESS THAN THE AMOUNT OWED?
Banks aren’t in the real estate business. They don’t want to own your home. And because banks were as blind sighted by the foreclosure crisis as everyone else, they already have more homes on their books than they can expect to sell in a year.
If there’s one word that describes how banks feel about foreclosures right now it’s:
ENOUGH!
As a result, many banks are now offering cash incentives and have speeded up processes to encourage short sales. You may qualify for a short sale if you:
• Owe more than your house is worth
• Can prove financial hardship
• Are unable to afford your current mortgage payment
The federal government, along with many state and local agencies, have also stepped up their foreclosure prevention initiatives. Key among the foreclosure prevention initiatives is the Home Affordable Foreclosure Alternatives (HAFA) program. Homeowners who qualify for a HAFA short sale get:
• $3,000 in relocation assistance
• The reassurance that the foreclosure process will be halted during the short sale process
• A waiver on deficiency judgments following the sale, meaning the lender will not seek to collect the difference in the amount of the mortgage and the sale price.
The situation is complicated and the stakes are high. Never has it been more important to have a local market advocate on your side. Contact me today and let’s get started! www.Sheldahodges.com
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