Think a foreclosure is your only option?

If you are falling behind on your mortgage payments and think foreclosure is your only option, think again.

The foreclosure process can be an embarrassing and stressful process.

For some home owners who may be upside down in their loan or owe more than what their house is worth, the future may seem very bleak, or is it? Talking with your lender and negotiating a short sale may be the answer you were looking for.                              

Have you weighed the options of a short sale? Do you know what the benefits of a short sale are? Here are just a few of them

Benefits of a short sale:

1. Avoid foreclosure
2. Help save your credit
3. Reduce debt
4. Gain control of your finances
5. Make a fresh start
6. You may be eligible , under Fannie Mae guidelines to purchase another home in 2 years instead of 5-7 years.
7. If your credit report does not reflect a 60 day plus late payment, under Fannie Mae guidelines you may be eligible to purchase another home immediately.
8. It is the fastest solution to the mortgage foreclosure process.
9. Saves you stress and embarrassment

Did you know that if your house is foreclosed on it can remain on your credit for 7-10 years, and a short sale for a little as 6 months to a year?

What does the term "Short Sale" mean?

Simply put: it means the seller's agent sells your home to a buyer at market, or slightly below market, and the lender agrees to accept the proceeds as payment in full on the amount due the lender, even though the sales price is less than the existing loan amount.

The downside to this is there is nothing stating that a lender is required to do this.

Through this process (the short sale) the lender gets his money, and the seller can walk away from the property. Not all banks will work with you in a short sale, and some will also make you take out a note against the difference between what was owed and what the property sold for. These are  both questions you need to pose to your lender.