Reasons to Short Sale?
A Loan Modification Requires 3 Missed Payments.
FACT:
A loan modification generally require that you have at least 3 missed payments or more before they will consider a loan modification solution. In fact, many lenders will not even talk to you until you have missed your 3 payments.
SOLUTION:
You can short sale your property if you are current on the mortgage payments. Once the short sale is completed, you can often qualify for a new purchase under Freddie Mac or Fannie Mae guidelines. Of course, you must quailify for the new purchase and have met the minimum lending requirements of 3.5% down plus closing costs and reserves requirements. Consult your lender as to what options you have available for your situation.
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Mortgage Holders Owe More Than the Home is Worth:
FACT:
Did you know that over 25% of current mortgage holders in Southern California owe more on their current mortgage than the home is worth.?
SOLUTION:
A short sale approval from your bank will allow you to get out from under bad debt which you can no longer afford.
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Foreclosure is Costly to the Bank as Compared to a Short Sale Solution.
FACT:
As an option, foreclosure is very expensive to the bank/lender because the timeline to get a property sold and transfered is typically longer and the lender/banker has holding costs, maintenance costs, taxes, deferred maintence, etc. which increases the losses to the bank as time increases in the holding costs. There are many other reasons for which lenders do not benefit from going the foreclosure route.
SOLUTION:
Short Sale is a better solution because it helps the community to recover from excessive lower sales driven by massive foreclosures in any community. This drives the values of homes downward. Short sales speeds up the process of economic recovery for communities in America by getting properties out to the marketplace faster by bypassing the foreclosure process which takes longer to implement.
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Foreclosure is Extremely Damaging to Your Credit.
FACT:
A foreclosure is extremely damaging to your credit. It may effect your job or promotion prospects because it could cause you to be viewed as a security risk to the employer.
SOLUTION:
A short sale is viewed as a "workout" with the lender instead of a "kickout" of your home by the lender. This approach is far less damaging to your credit and allows you to borrow money again far more quickly.
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Many Homeowners owe more on their property than the home is worth.
FACT:
In the Southern California area more than 25% of homeowners owe more on their mortgage than their home is worth. This situation is happening all over America.
SOLUTION:
A short sale workout is a way for the homeowner to extingush bad debt they can no longer afford.
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The success rate of loan modification is very low.
FACT:
A large amount of people these days have tried to get a loan modification without any luck. Many more have been approved for a loan modification but the terms and difference in the old payment to the new payment is little, hense, making little difference or benefit to the homeowner and their family. Far less bankers/lenders allow for principal reductions to the mortgage balance owed. The banks typically take many months to deliver any answers and cause much frustration and stress to the homeowner.
SOLUTION:
Completing a short sale will eleminate your mortgage debt and will cost you nothing, in most cases. Lenders/banks negotiate the terms of the short sale and that result is most often far more beneficial than a foreclosure.
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Beware of Short Sale Scams
Be Aware of Real Estate Licensees wanting Advanced Fee!
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Choose a Proper Licensed Lawyer Who Understands Short Sales
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Ask for License Information of the Negotiator, Processor or Escrow Agent.
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Be Aware of Unlicensed Processors & Negotiators
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Fictitious Buyers Trying to Purchase Your Short Sale Listing.
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