Short Sale to Prevent Home Foreclosure - New Bail Out For Homeowners!
The term short sale of more often used in referring to stock on the financial markets, yet few people know that short sale is also used to describe a process in selling real estate.
Short sale is used more often to help homeowners sell their property for less than the total mortgage amount owed on the property.
For most people facing foreclosure, this is an option worth looking into to resolve major debt issues.
Affording Your Mortgage: If you are facing a situation where you can no longer afford the mortgage payments there are ways you can be proactive in getting the payments reduced, negotiate a better interest rate and even lengthen the term of the loan to a 30 year or 40 year term.
This is called load modification.
There are certain criteria to be able to qualify for a loan modification and it is a viable option if you still have a steady income and just need an adjustment to be able to afford to keep your home.
Prevent Foreclosure: But for others this is not a good solution because they could not qualify for loan modification, or the homeowner does not want to keep a property investment that is worth less than the mortgage while their mortgage payment keep increasing, or you may be in a situation where you have lost your job, experienced a death in the family or an illness that prevents you from working full time.
Whatever your circumstances, if you have missed one payments, you might be on the road towards harder times to keep your property.
Unfortunately, to get a loan modification you will have to miss at least three payments to qualify and most of these loans that require a loan modification start off manageable, and the homeowners can handle the payments.
Yet, as these are loans based on adjustable rates, when the rates increase, homeowners are caught up with the shock of higher payments that are a struggle to make.
But why wait to get into a worse situation just to qualify for a loan modification.
You can take action sooner with a short sale option.
Just this month, the Obama administration announced new programs to prevent foreclosures and help homeowners who do not qualify for refinancing or loan modifications.
This program provides incentives to banks and lenders for assisting homeowners do short sales of their property with minimal damage to your credit rating and maintaining a score that will allow you to purchase again in the future.
Should You Consider Short Sale? In essence, a short sale is selling your home at market value and giving the sale proceeds to pay off the mortgage.
The advantage with a short sale is if the sale of the home does not cover the total amount of the mortgage owed to the bank, the difference is forgiven and you do not have to pay the remaining mortgage amount that is left over.
Under the new plan offered by the Obama administration, homeowners have another option to use to get out of debt, protect credit score, and enjoy a glimmer of hope to rebuild your future goals in harsh economic climate.
At the same time, it give the opportunity for the banks and lenders to recoup a substantial amount of the loan plus gaining a bonus incentive without having to get into the business of buying and selling real estate through foreclosure.
Short sale is used more often to help homeowners sell their property for less than the total mortgage amount owed on the property.
For most people facing foreclosure, this is an option worth looking into to resolve major debt issues.
Affording Your Mortgage: If you are facing a situation where you can no longer afford the mortgage payments there are ways you can be proactive in getting the payments reduced, negotiate a better interest rate and even lengthen the term of the loan to a 30 year or 40 year term.
This is called load modification.
There are certain criteria to be able to qualify for a loan modification and it is a viable option if you still have a steady income and just need an adjustment to be able to afford to keep your home.
Prevent Foreclosure: But for others this is not a good solution because they could not qualify for loan modification, or the homeowner does not want to keep a property investment that is worth less than the mortgage while their mortgage payment keep increasing, or you may be in a situation where you have lost your job, experienced a death in the family or an illness that prevents you from working full time.
Whatever your circumstances, if you have missed one payments, you might be on the road towards harder times to keep your property.
Unfortunately, to get a loan modification you will have to miss at least three payments to qualify and most of these loans that require a loan modification start off manageable, and the homeowners can handle the payments.
Yet, as these are loans based on adjustable rates, when the rates increase, homeowners are caught up with the shock of higher payments that are a struggle to make.
But why wait to get into a worse situation just to qualify for a loan modification.
You can take action sooner with a short sale option.
Just this month, the Obama administration announced new programs to prevent foreclosures and help homeowners who do not qualify for refinancing or loan modifications.
This program provides incentives to banks and lenders for assisting homeowners do short sales of their property with minimal damage to your credit rating and maintaining a score that will allow you to purchase again in the future.
Should You Consider Short Sale? In essence, a short sale is selling your home at market value and giving the sale proceeds to pay off the mortgage.
The advantage with a short sale is if the sale of the home does not cover the total amount of the mortgage owed to the bank, the difference is forgiven and you do not have to pay the remaining mortgage amount that is left over.
Under the new plan offered by the Obama administration, homeowners have another option to use to get out of debt, protect credit score, and enjoy a glimmer of hope to rebuild your future goals in harsh economic climate.
At the same time, it give the opportunity for the banks and lenders to recoup a substantial amount of the loan plus gaining a bonus incentive without having to get into the business of buying and selling real estate through foreclosure.
