| Before we talk about short sales as a solution to your | | | | price and the amount you owe on your mortgage. |
| underwater mortgage, we want to give you a quick | | | | So how is a short sale different? With a short sale, the |
| primer about the alternatives. That way you can | | | | mortgage lender agrees to let you sell your house and |
| compare short selling to the rest of the options you | | | | agrees to take the price you get for it as a payoff on |
| have when you're faced with an underwater | | | | the mortgage! And the right Realtor may be able to |
| mortgage. | | | | negotiate verbiage into the Agreement Notice (the |
| Now for the purposes of this article, we're assuming | | | | approval on the short sale you receive from your |
| that you can't afford to pay the monthly payment on | | | | lender) so your lender won't come after you for the |
| your underwater mortgage anymore. That's the | | | | deficit. We bet you can see the advantages here right |
| situation that most people who find our website find | | | | away. |
| themselves in. With that said, here are some of the | | | | You're out from under your underwater mortgage. |
| other options: | | | | You'll be able to live in your house payment-free until |
| Applying for a loan modification can certainly delay or | | | | it's sold. And your credit rating won't suffer as much! |
| draw out a foreclosure, but fewer than 3% of | | | | There's even a new federal program that might give |
| homeowners actually qualify. And two of the available | | | | you up to $3000 to relocate. It's about time the |
| options will end up with you eventually paying more for | | | | government started helping homeowners, isn't it? |
| your mortgage than you originally signed up for! But, if | | | | Short sales do take some work on your part though. |
| you can get the modification and when you do the | | | | You'll have to hire an experienced, certified, short sale |
| math it makes sense to you, go for it. | | | | Realtor to negotiate with your lender. You'll have to |
| You could give your mortgage lender a "deed in lieu." | | | | provide lots of documentation to your Realtor, so they |
| This means you hand over the deed and the keys, | | | | can pass it along to your lender. You'll also have to |
| and you walk away from the house. This is not a | | | | prove financial hardship. |
| good option! Why? Because most mortgage lenders | | | | This might all seem hard. But when you're dealing with |
| will hound you relentlessly about paying the difference | | | | an underwater mortgage on top of everything else, a |
| between what they can sell the house for and the | | | | short sale can be the best solution to your problems. |
| total amount of your mortgage. And because | | | | At best, you sell your house and walk away scot-free. |
| mortgage lenders aren't set up to be real estate | | | | At worst, you delay foreclosure, sometimes up to a |
| offices, they will sell your house for pennies on the | | | | year or more. |
| dollar just to get rid of it. | | | | Just be patient and don't fall under the illusion that short |
| The next option is foreclosure. With foreclosure, you | | | | sales are, well, short. They can take up to a year, just |
| can keep living in your house mortgage-payment free | | | | like any other housing sale! But spending a year without |
| until you get an eviction notice. You'll have to manage | | | | paying on your underwater mortgage isn't a bad |
| your way through a few years of less-than-stellar | | | | payoff for that kind of patience, is it? |
| credit, but Kristin and I have been through this option, | | | | Please don't stress over finding the right Realtor to |
| and it's worked out well for us so far. You may also | | | | short sell your home. We can help. Just contact us and |
| have to worry about your lender coming after you for | | | | we will find a professional, certified short sale Realtor in |
| the difference between the eventual foreclosure sale | | | | your area. |