The Light at the End of the Tunnel
Did you know that everyday another American family is facing the harsh reality of a foreclosure zeroing out their chances for being able to own another home someday? Did you also know that a foreclosure can allow your lender to keep pursuing on the remaining balance of your home after the house has been sold to make up the difference from what is owed and the foreclosure sale price… shocking right?! Before making a financially altering decision and allowing your family’s home to fall into foreclosure, do understand there is an alternate path that may be able to relieve your name from owing your lender anymore than what your home sits at current value, and it’s called a short sale…
With a heavy drop in property values over the last few years, lenders were forced to agree upon another solution to a loss of profits in particular cases, and here we are to explain how it works..
Agreeing to a short sale of a home relieves the consumer of all extra debt owed to the lender, after selling the home fore current market price value. For example, consumer owes 150,000 USD to the lender, but the current value of the home is 100,000 USD, the lender may make an agreement to forgive the debtor of the 50,000 USD and walk away with 100,000 USD the property was sold for. This is typically a forgiveness act, as they do lose a portion of their deficiency balance but allow the consumer to catch a break for the extra interest fees.
Be aware that a short sale can still effect your credit scores, and will usually report as a settled account instead of paid in full as agreed; but with a good attorney you may be able to negotiate with the lender to report the account as paid in full. Short sales are the BEST method to get out of your home and remove the legal liability if you are upside down on equity.
If you have questions about the process of short sales, feel free to reach out to us at 1(800)216-2725