Avoiding Foreclosure – Short Sales
A Short Sale is an agreement by the lender to accept less than the amount owed on the lown. The home is sold for less than the borrowed amount, and the lender accepts the amount to satisfy the debt. While you may end up owning on some of the balance, the short sale wil release you from any further liability of the loan.
Who can qualify for a short sale?If you do not qualify for the program to modify your mortgage, you may qualify for the short sale program. Residents only
- The mortgage must be less than $729,750
- The seller must be behind or about to fall behind on the mortgage
- The mortgage originated before January 1, 2009
Benefits of Short Sales
- Knowing you sold your home can help you retain some of your dignity
- Short Sales don’t have the same social stigma that foreclosure does
- You don’t have to make momrtgage payments unless you choose to
- Your house is your home, you rest better after meeting the new owners
- You may be eligable to buy another home in two years. If you foreclose, you are delayed buying another home for 5-7 years
- If your credit report does not reflect a 60-day+ late pay, under Fannie Mae guidelines, you will be eligible to buy another home immediately.