This short sale outline is brought to you by Pablo Lopez for information purposes only, Lopez has many years of experience helping homeowners with Short Sales, foreclosures, deed-in-lieu of foreclosure and Bank Own Properties a/k/a REO. A short sale happens when a homeowner falls behind on the promise to pay a mortgage debt and the property values are underwater or not enough value in oder to cover the entire mortgage debt. i.e You purchased your home when the market was at it’s peak, now your job or income changed, perhaps lost of income by divorce or death in the family now you are unable to meet your mortgage obligations to pay back as promised. Once you are 30-days behind on your payment you are in default and the servicer of your note will file for foreclosure. In lieu of your current hardship you might consider selling your house for less than what it’s owed to the lender subject to lender approval. In short this simple explanation is a summary of what is a short sale in real estate. So lets not jump ahed of ourselves, the following outline is a few options that you might want to explore if you feel that your hardship is temporary and within certain amount of time you will be able to recover and continue with your regular payments plus the arrears. Also be aware that lenders are willing to work with you to help you retain your house, there’s no charge or fees to apply for a loan modification.
If all fails and short sale is the only option you might want to ask your lender if they offer relocation assistance. Relocation assistance is funds offered to you the homeowner for participating in the short sale of you home in lieu of your cooperation to complete and ultimately delivering the house at the time of closing in broom-swept condition. Relocation assistance is based on eligibility and lender participation in these programs.
The short sale process can vary from lender to lender but basically short sales start in the same manner. Home retention was not possible and the loan modification was declined perhaps the loan modification was not viable. This is what you need to know, short sales are paperwork intensive for the seller. Short selling might be a better alternative for all parties and a way to stop the harassing collection calls once completed. Also be aware that you might get a 1099 for the amount of debt forgiven. The following process outline is for information purposes the process might vary on a case by case basis.
Last but not least there’s the Cash For Keys CFK option where you offer to surrender title to the bank voluntarily, leave the house in good condition in exchange of forgiveness of your debt. All viable solutions. If you are facing hardship and will like for us to help you explore these options don’t hesitate to contact our office we’ll schedule a confidential no obligation consultation. You can Reach Lopez at 973-955-2744 Ext 700.