In the Indianapolis area as well as many other areas, there's quite a few foreclosures these days. Foreclosure usually happens when a homeowner can't afford to make the monthly mortgage payments any longer. Some of the reasons for this are: divorce, lay-off or job loss, illness, over-extending credit/mortgage, new construction home with 100% financing & property tax adjustments, adjustable ARM mortgages, interest only mortgages and unplanned expenses that get you behind.
I just wonder how many homeowners that are faced with this situation know about the "Short Sale" option? What it is in a nut shell is the bank allows the homeowner to sell the property for less than the mortgage balance(s). In return, the homeowner will take a tax hit on the "gain" (balance difference of mortgage vs sale price) and having that balance forgiven. Plus the ding it'll cause to his credit. In many cases this usually out weights the stress of trying to keep up and possibly getting furthur and furthur behind. It's best to work with a loss-mitigation specialist and/or a Realtor that is familiar with short sales. It's important to have a Realtor that's willing to work out an acceptable deal between all the parties involved. You will still have to give up your home but it'll keep you from going into a complete foreclosure situation which is a lot more costly for you the homeowner and the bank(s).
If you would like more information about "short sales" or have a comment, please drop me a line or visit my website www.cyndisloop4indyhomes.com.
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