Prevent Foreclosures

Archive for the ‘Real Estate Short Sales’ Category

One of the most popular way to prevent foreclosure is to do a short sale. A real estate short sale is becoming more and more common as more and more homeowners are facing foreclosure. A real estate short sale is not to be confused with a stock short sale.

How does a short sale work?

With a short sale you may have the option to sell your home for less than the amount owed on your mortgage. By doing a short sale, you may be released from your obligation to pay back your primary mortgage under its original terms. However, don't rest assured because not all homeowners who have successfully done a short sale are released from their original mortgage obligations.

Some mortgage companies may accept the proceeds of the foreclosure sale as payment in full. Your mortgage company will have to approve the short sale proposal. If you can get your mortgage company to accept the short sale of your home, then you might want to get them to state in writing if they would release you of your original mortgage obligation. A short sale can help you avoid a foreclosure sale and may be considered even if the foreclosure process has started.

Benefits of a Short Sale

There are many benefits to a short sale which is why it is a very popular way to prevent and avoid foreclosure. As the homeowner, you:

• Avoid a foreclosure sale — in some cases the foreclosure sale may be postponed once a written, signed offer is received and approved by your mortgage company
• Can live in your home until the new owner closes, giving you time to make other living arrangements
• May be released from your obligation to repay your mortgage balance

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Question: Can I negotiate a short sale of my mortgage with the bank and keep my credit rating in tact?

Answer: Not necessarily, what you can do is ask them for a loan modification that will help you maintain your credit, not have a late payment and keep the house. In order for you to have a short sale, you will most likely have to be 90 days late to start the procedure. Talk to your bank and see who you can speak to about a loan modification or speak to an attorney (real estate, title, etc..) to help you with a modification.

Question: Can anyone explain in more detail what a "short sale mortgage arbitrator" is?

I'm in the process of purchasing a home that is a short sale. It's been 5 months since the bank took our deposit and we are still awaiting a final approval. I've been told that it has now been passed onto a "short sale mortgage arbitrator"? Am I even using the correct term here?

Answer: A short sale basically means your agent presents a proposal to the bank and goes "hey, come on, you know you can't get the whole mortgage amount for this house now, take less, take our deal now". The bank, obviously, wants as much out of you as possible. This short sale mortgage arbitrator should:  Read the rest of this entry »