Tuesday, January 26, 2010

What is this thing called a Short Sale? Part 1

So many homeowners have gotten to the point of no return....

The national unemployment rate is at 10%. Homeowners are struggling to make ends meet. Mortgage payments are being missed, the banks are calling. What is a homeowner to do?

One choice is to do a short sale. The word short has nothing to do with the length of the process. A short sale is where the homeowner gets approval from the lender(mortgage holder)to forgive a portion of the debt-less than the amount is due.

Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

It may make sense for you...your first step is to contact your lender and ask for a hardship package...Never tell the lender that you want to short sale your house~this requires their approval.


No comments:

Post a Comment