If you are like the tens of thousands homeowners struggling to make their mortgage payments, it is important to know there is help and and there is hope.
Mortgage investors have come to the realization that a foreclosure is not only disastrous for you, for the community in which you live, but also for them.
It is for this reason that banks have begun to shy away from foreclosing on a struggling homeowner who has defaulted on their mortgage.
Instead, they are reaching out to those in need to determine what other options are available to them.
One such option is a short sale.
A short sale is a dignified way for a homeowner who can no longer keep their home to walk away from it.
Selling a home short means that the value of the home is less than what is owed to the underlying mortgages.
In other words, the home is "underwater.
" For example, if you own a home with a mortgage of $100,000 but the value of the home is just $80,000, you are $20,000 underwater.
If you decided to sell, you would either have to bring the $20,000 to closing or request from your mortgage lender to approve a short sale.
Getting approved short selling your home has with it three steps.
The first step is to gather together your financial documentation.
An approval to short selling requires first demonstrating you are experiencing a hardship.
Valid hardships include such setbacks as the loss of a job, the reduction of income, a job transfer or a divorce.
You will want to have a written letter-- a hardship letter-- as well as recent bank statements, pay stubs, tax returns and a list of your income and expenses.
The second step is to contact your mortgage company.
Call the customer service number on your mortgage statement and inform the customer service agent that you are experiencing a hardship and would like to be considered for a short sale.
In most situations, you will be transferred to a mortgage resolution specialist who will conduct a preliminary financial interview over the phone.
Once the interview is complete and a hardship established, you will then be conditionally approved for a short sale and advised to contact a licensed real estate professional in your area to list your home.
Your third step is to hire a real estate professional to list your home.
Be careful not to hire just any real estate professional as short sales in come with their own set of challenges and strategies that are unlike traditional real estate transactions.
One is the amount of time that it can take to complete a short sale.
A second is the potential of still owing the mortgage debt after the short sale is complete.
A third is failing to receive any monies from your lender at closing.
It is critical that the real estate agent whom you hire for short sale help has experience in listing, marketing and negotiating a successful short sale.
This will give you the time to find suitable housing and to be released from any further financial liability as well as receiving any compensation entitled to you at closing to help pay for your moving expenses.
By following these three steps, you can feel confident that you can gracefully leave behind the stress and anxiety of owning an underwater and unaffordable home.
Being free from this debt will put you on the path towards financial recovery.
Mortgage investors have come to the realization that a foreclosure is not only disastrous for you, for the community in which you live, but also for them.
It is for this reason that banks have begun to shy away from foreclosing on a struggling homeowner who has defaulted on their mortgage.
Instead, they are reaching out to those in need to determine what other options are available to them.
One such option is a short sale.
A short sale is a dignified way for a homeowner who can no longer keep their home to walk away from it.
Selling a home short means that the value of the home is less than what is owed to the underlying mortgages.
In other words, the home is "underwater.
" For example, if you own a home with a mortgage of $100,000 but the value of the home is just $80,000, you are $20,000 underwater.
If you decided to sell, you would either have to bring the $20,000 to closing or request from your mortgage lender to approve a short sale.
Getting approved short selling your home has with it three steps.
The first step is to gather together your financial documentation.
An approval to short selling requires first demonstrating you are experiencing a hardship.
Valid hardships include such setbacks as the loss of a job, the reduction of income, a job transfer or a divorce.
You will want to have a written letter-- a hardship letter-- as well as recent bank statements, pay stubs, tax returns and a list of your income and expenses.
The second step is to contact your mortgage company.
Call the customer service number on your mortgage statement and inform the customer service agent that you are experiencing a hardship and would like to be considered for a short sale.
In most situations, you will be transferred to a mortgage resolution specialist who will conduct a preliminary financial interview over the phone.
Once the interview is complete and a hardship established, you will then be conditionally approved for a short sale and advised to contact a licensed real estate professional in your area to list your home.
Your third step is to hire a real estate professional to list your home.
Be careful not to hire just any real estate professional as short sales in come with their own set of challenges and strategies that are unlike traditional real estate transactions.
One is the amount of time that it can take to complete a short sale.
A second is the potential of still owing the mortgage debt after the short sale is complete.
A third is failing to receive any monies from your lender at closing.
It is critical that the real estate agent whom you hire for short sale help has experience in listing, marketing and negotiating a successful short sale.
This will give you the time to find suitable housing and to be released from any further financial liability as well as receiving any compensation entitled to you at closing to help pay for your moving expenses.
By following these three steps, you can feel confident that you can gracefully leave behind the stress and anxiety of owning an underwater and unaffordable home.
Being free from this debt will put you on the path towards financial recovery.
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