7 Reasons to Consider a Short Sale
By: Jaclyn Erwin, ABR, Realtor
Charlotte NC Real Estate
With the surge in the number of foreclosures throughout North Carolina, I am often contacted regarding a homeowner's options in saving their home and/or credit from disaster. Believe it or not, folks, the foreclosure dilemma not only affects modest, starter based homes, but homes in the million dollar price ranges as well. Despite what is being printed in local newspapers throughout the state, the number of foreclosures throughout the Carolinas has increased significantly and both our homeowners and neighborhoods are suffering. No one is immune to the effects caused. Everyone is affected. However, there is help available to remedy the situation and many mortgage companies, community-based programs and real estate professionals are actively working together to help alleviate foreclosures.
Now, many homeowners seeking relief often times do not understand the benefits and tradeoffs of undergoing the Short Sale process. This is especially due to the fact that there are as many different types of Short Sale qualification processes and guidelines as there are banks. These guidelines depend upon a number of factors such as the type of the loan undergoing the short sale approval process, the loan's servicer--meaning who monitors and collects the loan payments on behalf of the mortgage company/investor, the organization/program financially backing the loan, the specific mortgagor's Pre-foreclosure/Short Sale requirements and the length of time the loan has been in default.
Throw in misinformation spreading rampantly, scam artists targeting those homeowners in default, and some (surely not all as the majority of the companies want to help and do help) mortgage companies unwilling or uncooperatively discouraging homeowners to just give up and turn in the keys---- It's no wonder homeowners become so frustrated and decide to give up. My response to this: Don't give up. Get help and get help NOW. Educate yourself on the basic steps you must take to avoid foreclosure.
Homeowners can further educate themselves and get quick, reliable help by first making their lender aware of their financial hardship and immediately contacting a seasoned, Realtor who specializes in Short Sales and Preforeclosures within their area. The mortgage company can provide you with options to help you save your home. Likewise, a specialized Realtor will be able to intervene on your behalf, advise you of your options based upon their experience with your specific type of loan, the short sale program that will apply and their experiences and past success with dealing directly with your mortgage company. Experience and Success Rates is Key. It is a MUST and Yes, It Does Matter!
Below, I've listed 7 Reasons to Consider a Short Sale
- The homeowner has suffered a financial hardship which does not appear will get better within the next six months to a year.
- The homeowner or their spouse/partner has suffered a medical condition that prohibits him/her from working or obtaining financial support to save their home.
- The homeowner has agreed to sell their home to avoid foreclosure, but cannot make the necessary repairs to bring the home up to par to command a price equal to or greater than what is currently owed on their mortgage balance.
- The homeowner became over-extended financially and as a result, is in a financial bind that prohibits them to continue to make payments on their home. For example, this may be a result of a job layoff, divorce, job termination, or overall increase in everyday living expenses.
- The homeowner has suffered an extenuating family situation that resulted in the family's overall budget to decrease significantly. For example, a spouse may have become extremely ill and unable to work, a divorce or separation has gone into effect, or one of the mortgage borrowers has become incarcerated.
- The homeowner is currently 30 days or more late on their mortgage payments and the collection process has begun. The homeowner wants to avoid a foreclosure and save their credit.
- The homeowner has been in collections status for some time and in fact, time and their options are running out in saving their home. The homeowner thought he/she would be able to overcome foreclosure by "catching up" on payments, but things have unfortunately turned for the worst.
Again, these are several reasons why a homeowner may consider a Short Sale. If you or someone you know is facing foreclosure, get help fast. Contact Jaclyn Erwin, ABR at 1-866-833-9039 or contact her directly for help at www.TeamJaclyn.com
Jaclyn Erwin, ABR, Realtor
Charlotte NC Real Estate
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