With the foreclosure rates jumping across the nation, more and more homeowners are faced with quickly selling their home in order to avoid foreclosure. Yet, the housing market is so flooded in some areas that houses can sit on the market for several months, and sometimes years, before they sell. If you are an individual looking to sell your home to avoid foreclosure, what options do you have?
Home Short Sale : A process by which you sell your home for less than you owe on it.
In recent years, the popularity of the short sale has increased due to rising loan defaults. A short sale is a process by which you can sell your home for less money than you owe on it. Although still not a common way to avoid foreclosure, the short sale can work if the mortgage company is willing and your buyer is committed.
Negotiate with Your Mortgage Lender to Work out favorable Short Sales Terms
Your mortgage company will consider several factors before approving a short sale. And, ultimately, the decision to approve the sale is completely up to them, so you and your buyer will want to be as cooperative as possible. Short sales often take longer to implement than a standard home purchase, so you’ll also need to be patient.
The mortgage lender will want to know the circumstances that caused you to fall behind on your mortgage payments and what your future financial prospects for repayment may be. They will also do their own assessment of whether it is more profitable to approve the short sale or repossess the property and put it on the market themselves. Although most mortgage companies are helpful, their goal is to make money so they can ultimately decide to proceed with foreclosure.
Don’t Drag Your Co-signer Down With You!
If you have a cosigner on your home loan, the lender will want to investigate the chances of obtaining payment from the other party(ies) and they will also look to see if you have any other properties currently in default before approving a short sale.