Is your lender about to foreclose on you?
Is your lender about to foreclose on you? Why go into more debt if you can avoid it. We may be able to help, by doing a Short Sale on your property.
A real estate short sale is any sale of real estate that generates proceeds that are less than the amount owed on the property. A real estate short sale occurs when a lender and borrower decide that selling a piece of property, thereby absorbing a moderate loss, is preferable to having the borrower default on the loan. – Investopedia
How can a Short Sale help me?
A short sale is best done pre-foreclosure, it is therefore an alternative to foreclosure. If your lender approve your short sale, and they agree to close out the loan for the short sale amount you walk away net zero. Although this will affect your credit score negatively the impact is far less than if you are foreclosed on. It also aids a borrower avoid having a foreclosure appear on his credit report.
An Example Of A Short Sale
A few years earlier you (the borrower) took out a mortgage of $300,000.00 at an interest rate of 5% per annum over 25 years to purchase your home. But after a few years life happens and you are unable to service the loan on your home and you begin to fall behind on your loan payments. The bank (the lender) decides to foreclose on your property and sends you a pre-foreclosure notice. The market value on your home has gone down and your home is worth 30% less than when you bought it. You agree to sell the house for the market value and your bank agrees to you selling at the market value and decides write down the loan amount and accept the amount that will be paid equivalent to the market value price as the total loan amount to close out the loan.