What Is A Short Sale To Stop A San Diego Foreclosure
The Short Sale Option
If you do not qualify for the governments home affordable refinance or loan modification program and you are heading towards foreclosure. You may want to consider a “Short Sale” on your home.
What’s a Short Sale?
A short sale is a process where a homeowner is facing a possible foreclosure, and has already attempted to do a loan modification San Diego program on your home loan. The homeowner enters into a mutual agreement with their bank or mortgage lender to accept a price for the property that’s less than the amount they actually owe on their current mortgage loan. After the home is sold in the short sale process, the homeowneris not entitled to any profits of the sale.
Short Sale Advantages
By successfully completing the short sale the homeowner avoids many of the problems that come from a foreclosure sale on their home.
Homeowner avoids having to go through the humiliating foreclosure process.
A short sale has less of an impact on your credit score. And typically you can re purchase another home under H.U.D guidelines after 3 years vs five years after beign foreclosed upon. And the most important benefit of the short sale process is that the lender will potentially release you from any additional loan debt that remains after the sale is complete.
Lenders Advantage
With a short sale, lender does not have to go through the long process and the big expense associated with the Foreclosure process. And the lenders accounting books look better with a good performing loan as to a negative notations on their book which works against their ability to lend to more home borrowers.
Some Disadvantges
Beaware that not all lenders will offer to relieve you of ant deficiencies after the home is sold in the Short Sale process and you may be held responsible for paying off any negative balance of the loan. This is one major reason that it is advised to try and work out a loan modification San Diego home loan mortgage modification on your home loan before you have to result to this last resort option.
Most lenders will only consider a Short sale on your home when you are behind on your payments. So, before you mess up your credit call your lender to see if this would be an option for you.
Qualifying for a Short Sale will require similiar documentation to doing a home loan mortgage modification program. You will need to assemble your financial documentation, a letter of hardship and other documents that your lender may require.
You should consult a profession in the field with knowledge of the short sale process. You can find a Realtor in your area who may specialize in the the Short sale process by doing a Google search or contact your local Board of Realtors for a listing in your area.
