Alternatives To Foreclosure Can Be A Huge Advantage! (Short sales)
I have been in short sales for three years now. Back in the early days, I’d spend a lot of time explaining to Realtors and home owners exactly what a short sale is! Today, most people know the basics of them and I usually talk about the benefits and details they don’t want to forget.
I work as a Realtor and Investor and help people nationwide to find different ways of dealing with difficult real estate situations. Most I talk to have less money coming in, their payments are going up, and their real estate has dropped in value.
Some solutions: Many people talk with the bank and attempt to get a mortgage modification. This is nice, but all too often ends in a reduction that is not enough to help. Banks have strict guidelines and can deny the modification because of too little income.
A second way that we may suggest is legal foreclosure defense. A lawyer looks over your mortgage documents and makes the lender come up with all the proper paperwork. This can delay the foreclosure for a long time!
Most of the time, even with the first two options, it will eventually come down to either a foreclosure or a short sale. Most agree the short sale is much better than a foreclosure. It leaves your credit in much better shape and often dismissed all that may be owed to the bank!
There are a lot of people who are in what I can the ”standard” position. This is someone who has lost their job and/or have lower income and their home has lost a LOT of value and the mortgage payment has gone up. Often, people want to try to get a mortgage modification in order to continue paying lower payments and stay in their home. I totally agree with this as a first tactic to use. BUT, the end result is usually too little a decrease in payments and they end up right where they started.
If this does not work out, usually the best solution is the short sale. You can sell the home, get into a better situation with a rental or other living arraignment, and usually dismiss the deficiency amount and income tax liability! This is a fresh start! Much better than a bankruptcy or foreclosure! These can leave the home owner with the debt still over their heads and sometimes huge tax liabilities! There are many several attorneys that can help advise you along the way.
Looking to find the best deal on short sales, then visit www.americanproperties1.com’to find the best advice on avoiding foreclosure for you.