Options When Facing Short Sale or Foreclosure
Short Sale. . . Is It for Me?
When facing loss of property due to economic or other hardship, an owner has an option over foreclosure. This option is called a short sale. The owner negotiates with the lender a discount on the loan balance. This discounted price allows the owner to sell the property for less than than the outstanding balance of the loan. Once the property is sold at the agreed reduced price, the debt is considered paid in full. By choosing the reduced loan amount, the lender minimizes their financial loss. For the property owner a short sale provides more control over the process of losing their home. In addition, a short sale is less harmful on the owner’s credit report.
DREIM™ can guide you through the process and answer all of these questions:
- What are the advantages and disadvantages of doing a short sale versus a foreclosure?
- How will this impact my credit report and FICO score?
- What is the timeline for a short sale?
- Is refinancing my current loan an option?
- What are the costs involved?
- What role does my current lender play?
- Do I need to hire a real estate professional? If so, what role do they play?
- When can I qualify to buy another home?
- My property is a rental, what happens to my tenants?
- Who pays past due HOA dues?
- Is there legislation pending that could help or hurt me?
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