Molly LeBlanc
Real Estate Broker
Certified Foreclosure Alternatives Consultant
In these hard times many people are having difficulty paying their mortgages. There IS an alternative to Foreclosure, one that is easier on your credit and financial stability.
It is important to have someone guiding you through this complicated situation who has completed the appropriate training and has successfully completed the process before. It is also important to speak with both a Tax Professional and an Attorney when deciding if a Short Sale is for your personal situation.
What is a Short Sale?
A Short Sale occurs when a lender agrees to accept less than the amount owed against a home because there is not enough equity to sell and pay the costs/fees associated with selling.
Why a Short Sale?
When you have a Foreclosure on your credit, it can take up to 5 years, a minimum 680 FICO score and 10% down payment to be able to purchase a home again, while with a Short Sale it can only take up to 2 years, no minimum FICO score and no minimum down payment.
For sellers trying to decide whether to let a home go through Foreclosure versus attempting a Short Sale, salvaging their credit is the main advantage to doing a Short Sale.
Do I Qualify for a Short Sale?
Ask yourself these questions to see if you/your property qualify for a Short Sale. If you have any questions on any of this please contact Molly
Answering these questions just gives an idea of where at on the Short Sale timetable you and your property will fall at. Answering No on any of these questions doesn't necessarily mean you and your property won't qualify.
- Have you missed or been late on any mortgage payments?
- How far along in default are you? (is there a Foreclosure date already set?)
- Do you have a legitimate, documentable hardship? (see examples of hardships)
- Are you prepared and willing to do the work it takes to complete a successful short sale? (gather the appropriate forms, allow marketing, be responsive, etc?)
- Do you have the ability to make any type of monetary contribution; in order to Fully settle your debt? (sometimes a lender will fully settle the debt with a small contribution from the homeowner, this is usually more applicable on 2nd or 3rd loans)
Answering these questions just gives an idea of where at on the Short Sale timetable you and your property will fall at. Answering No on any of these questions doesn't necessarily mean you and your property won't qualify.
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*This does not constitute as legal or tax advice. Be sure to seek both legal and tax advice before making this decision. Information is deemed reliable but not guaranteed.*
If you’re in trouble,
call an attorney, your
local Legal Aid office,
or 888.995.HOPE
Watch out for companies that ask you to sign papers that waive
your right to pursue legal actions against them—especially if
you expect to continue struggling with your home loan.
call an attorney, your
local Legal Aid office,
or 888.995.HOPE
Watch out for companies that ask you to sign papers that waive
your right to pursue legal actions against them—especially if
you expect to continue struggling with your home loan.
 |
Also be very wary of advertisements like “Cash for Houses/Any Situation” or “We Buy Houses for Cash.” Many of these are scams that falsely promise rescue from a foreclosure. Unfortunately, the “rescue” often involves the homeowner signing over the house and the family being evicted from its home. |
