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Question # 2: Why Should I Do A Short Sale?

Short Sales Can Be A Complex Experience for Houston and Spring TX Homeowners

Distressed Mortgage Homeowner Conducting a short sale on a home with a distressed mortgage can be a complex experience for any homeowner. Knowing one's options in a short sale and understanding the process can make the experience more successful and much less stressful. To assist homeowners in understanding the process, we have prepared a series of 10 blogs. Each blog answers one of the top ten short sale questions frequently asked by Houston and Spring TX homeowners.

Many times a homeowner in foreclosure will just give up either because they don’t understand the process, their options or they no longer care. In fact, CoreLogic reported that up to 69% of homeowners will foreclose without contacting a real estate professional for assistance.

When you feel there is no other way out, a short sale may be your best option. Here is several reasons why:

Calm your Fears

You may be anxious about whether your lender is motivated to work out a solution with you. The reality is that lenders lose much less in a short sale or loan modification than they do in foreclosure. The costs of foreclosure may cost your lender up to 50% of the loan amount while a short sale could only cost them from 15-30%.

Relieve the Pressure

What is Upside Down Mortgage?

When you owe more on your home than it is worth and are struggling to make payments, the pressure you feel can go through the roof! If you are in a situation where your expenses exceed your income, have a verifiable financial hardship and no other assets to pay off the balance of your mortgage, you may qualify for a loan modification or short sale.

Financial Implications

The financial implications of short sales are always less severe than the implications of foreclosure. Your credit score, credit history,employment applications, and future chances of acquiring a loan all benefit from completing a short sale rather than being foreclosed upon:

You will always have to disclose you had a foreclosure on any mortgage application and many job applications. This can cause an adverse effect on mortgage rates and job approval.
Credit scores can be lowered by 300+ points and is the most devastating to future credit availability and rate.
Foreclosure is the one item almost impossible to credit repair.
Lender can still seek a deficiency judgment for the difference between the sale price at the bank sale and the loan value. This can land you in a never ending collections.
Many employers run credit checks which can put a future or current job in jeopardy.
Security clearance and government positions including military can be jeopardized by foreclosure.

Escape Troubled Mortgage
Escape the Grip

When you began struggling with your mortgage payments, you may have felt that you had no way out of the situation. You actually have many. I will guide you through the process of finding which option is best for you. By discovering and acting on your options, you’ll have the leverage to escape the grip of foreclosure.