Are you “upside down” in your house mortgage? It is happening all over the country and you may have seen it on the news. Many homeowners are either 100% financed or owe more than they could sell their house for. If a life altering event occurs and there is no equity what can you do? Simple! Call us!
If you have had a life altering event or some type of hardship you may be eligible to complete a “short sale” with your mortgage company.
What is a “short sale”?
With the increase in foreclosures lately you may have heard the term “short sale” and wondered what it was. A short sale is when the lender will accept less than the full amount due on a mortgage when a property is sold. Usually, the lender will accept the short sale to avoid the time and expense of a foreclosure.
When a borrower is in default on a mortgage they not only owe the back payments but also may owe late fees, property inspection fees, attorney fees, etc. This can add up quickly to eat up all the equity the borrower had in the property, if there was ever equity at all. If the borrower is unable to bring the account current the lender will then foreclose on the property. With a foreclosure, the lender can lose up to 40% of the mortgage amount because of the extra costs involved with foreclosing on a property: attorney fees, court costs, lost interest, eviction costs, property maintenance costs, and selling costs. Therefore, it is sometimes in the best interest of the lender to accept the short sale.
It also can be in the best interest of the borrower. They will not have to endure the time and stress of a foreclosure and their credit may not be as adversely affected as it would with a foreclosure. It is quicker and easier and does not subject the borrower to the embarrassment of a foreclosure.
What can we do?
We are knowledgable and experienced with short sales. We will handle all of the paperwork and negotiations with your mortgage company. Let us help you today!
Contact Us Online or call 361-434-0004 and we can evaluate your situation.
