Fort Wayne Short Sale and How to Stop Foreclosure
Selling when your house is worth less than your mortgage:
Rather than go straight to foreclosure on properties where homeowners are behind on their mortgages, banks are entertaining short sales, a settlement in which they agree to take a lesser payment from the homeowner upon sale of the home to satisfy the mortgage due. The homeowner finds a buyer at regular market value and approaches the bank with the offer. Many homeowners qualify because the housing slump has made the value of their homes worth less than their mortgages.Many Hoosiers are choosing the short sale route because it saves them the embarrassment of a foreclosure, and in many cases they can walk away free and clear from the sale - even if it comes up thousands of dollars less than they owed. A short sale can save a homeowner's good credit because if it is worked out beforehand, the bank agrees the mortgage has been satisfied in the sale. A house can also bring a better yield on a short sale, as these are completed more quickly (excluding time on the market, these close on average in three to four months) than a foreclosure, which can take one to two years, and the property is usually in relatively good shape.Banks are more willing to negotiate of late. In the past, a short sale agreement with the seller could only be entered into after the bank had filed a lis pendens, or notification of foreclosure; today, the short sale process can be started before the homeowner gets behind on payments but has proof of an impending shortfall.
While a short sale can be a good choice for the homeowner, there are caveats: PROVE IT First, for the bank to agree to take a lesser amount than it is owed, a short sale must meet two criteria: The mortgage is greater than the worth of property. This is determined by comparable sales in the area. The homeowner must prove a financial hardship and demonstrate an inability to pay. People who are "upside down in their mortgage have to understand that they must be in financial hardship. Some owners forgo the chance to make a short sale because they don't think they can afford to pay the fees for attorneys, real estate agents and others. This is a fallacy. Money is paid out of the proceeds of the deal. In the end the bank pays the fees, not the homeowner.
Think a short sale is something that may be of interest to you or somone you know?
The Real Estate Experts at Perfect Location Realty are well versed on the ins and outs of Short Sales. Short sales aren’t for every agent and if not handled properly can become a nightmare. Be assured we are trained in short sale procedures and have the experience and knowledge to sell your home in these troubled times. Please don’t hesitate to contact us with any questions or concerns.
Contact Us
* Indicates a Required Field.
