Avoid Foreclosure By Doing A Short Sale
Topics: foreclosure, short sale, elder care relocation, mortgage, credit, realty
Many homeowners are finding themselves upside-down, meaning that they owe more on their home than the current market value. What factors have resulted in many owners finding themselves in this position?
For some, simple hardship results in being upside-down. Perhaps one our both spouses have lost their job or have had to take another position at a lower income. Perhaps due to an adjustable rate mortgage the monthly payment has increased to an amount that is difficult for the owner to pay. Other reasons include interest only mortgages where payments are applied only to the interest and no payments are made to reduce the base cost of the loan.
Some older adults find themselves in a position of planning for long term care and simply needing to move while their mortgage balance is greater than the value of their home. For them, it is simply a matter of timing versus a personal need for care. There are as many reasons people find themselves in this situation as there are people in the world.
So, once a home owner is in a position where making monthly mortgage payments become difficult, what is the best course of action? The obvious is to address the hardship issue if possible. However if this is an unrealistic solution, a short sale can avoid the route to foreclosure and damaging a credit rating. The time to consider a short sale is long (at least 6-8 months) before a home owner approaches foreclosure and when a valid hardship can be documented.
An experienced realtor can guide you through the short sale process. This includes gathering information about the requirements of the loan holder relative to the sale. In a short sale the skill of the realtor in the negotiation process is extremely important as the goal is to market and sell the home at the best price possible in order to close the gap on the amount of the loan and the net proceeds from the sale. Because of the process there are many more details than in a regular real estate transaction.
For example, a home with a loan value of $145,000 that can sells for $140,000 would result in a net proceed of approximately $130,200 (the cost to sell a home averages 7% of the sales price). Thus the difference between the loan amount and the net proceed is $14,800. This amount can be addressed in three ways: 1) it is forgiven in total, 2) the seller is asked to sign a loan for the amount due or 3) the seller is issued a 1099 at which time a tax specialist should be consulted.
The benefit of a doing a short sale versus allowing a home to go into foreclosure is that a credit record is not affected provided mortgage payments are current. The seller also remains in control of the transaction. Which means that the owner can occupy the home until is it sold and has time to make plans for new living arrangements. Take control of your real estate needs today and avoid foreclosure by looking into doing a short sale.
Pamela D. Wilson, The Care Navigator, provides counseling, education and advocacy for famlies and older adults. Visit www.pameladwilson.com or call 303-810-1816. For real estate info related to this article visit www.homesam.com
Previous Articles Highlighter:
Easy Ways To Stop Dogs Barking (1)
Time to bark yet? If your dog barks when you leave the house, 8 times out of 10 it will be because you're making to much fuss over them when you leave.
How You Can Learn Further Exemplary Lessons From Extraordinary Individuals In Home Business (2)
They celebrate victories together and stick together with the team during difficult period in developing the business. It is a wonderful and important lesson one can learn in creating good team cohesion and building of good relationships.
Will You Stick It Out Or Quit? (3)
This way you will at least be assured of consistent work over the months. Network The importance of networking is the key to success for any business! This point cannot be emphasized enough!
Is Using Craigslist Overrated? (4)
Now true posting an ad on Craigslist here and there is easy but it is not effective. And if you are posting ads like "Earn 6 Figures Overnight", most people are tuning those types of ads out.
How To Regain Your Horseback Riding Confidence (5)
or not? Is she seriously expecting me to get onto this trailer? That's not to say that you shouldn't proceed with caution or take the time to plan and prepare properly.
MLM Training - How To Overcome The "No Time" And "No Money" Objection (6)
Tim Sales helps network marketers gain the skills necessary to be successful in MLM. His MLM training is based on his personal success of building a downline of 56,000 people.
MLM Training - How To Create Superstars In Your Downline So You Can Retire Early (7)
If instead of tying the boy's shoes you teach him to tie his own shoes; he will not learn it immediately, so the immediate result is that it will take longer.
Interact On Forums And Blogs To Establish Expert Status (8)
Eventually they feel comfortable clicking on the link in my signature to find out more about what I have to offer. Because they are already feel like they know me, they're more likely to trust the information I offer and the services I provide.
Still Trying To Work From Home And Have Business Success? (9)
If anyone told you it would be a cake walk they were lying to you.One thing to keep in mind is there will also be great times with your business as well .Business success while you work from home does not come over night and you will have to work for it.
Why You Should Make The Most Of Independent Meeting Venues (10)
It might also be the case that the company hosting the meeting do not have adequate facilities in their office so need to find a venue that does. So what are the factors that must be considered when you are choosing between possible meeting venues?
Newer Articles Highlighter:
Factors Affecting Inclusions In Gemstones (1)
Keep in mind that you are within your rights to ask as many questions as you desire and can handle and study a gemstone as much as you wish before you purchase it.
Tracking Down Top Homes For Sale In Houston (2)
Many of these are pre-selling exquisite family homes at incredibly low introductory prices. The top homes are usually to be found in complexes like these, but there are a lot of bargains going out there.
6 Tips On How To Use Traffic Exchanges To Build Your Business (3)
You see them everywhere you look, but do they work? In this article we will answer that question and discuss how you can use traffic exchanges to build your business.
Arizona Real Estate: Why The Market Is Red Hot (4)
Why? Because there are a lot of newer properties there and it has always been known as the best area in the Phoenix Metropolitan area. Also, with Arizona the heat is a dry heat, so don't worry about humidity.
Copywriting For The Web: 5 Steps To Excel At Copywriting For The Web (5)
Copywriting isn't just about giving your readers information, but more importantly, it's about persuading them to try and buy your products and services. In order to make this happen, you must know how to apply your selling and persuasion skills on your copies.
The Use Of Reference Material In Education (6)
Encyclopedia This resource gives you brief articles about almost anything you can think of if it's a comprehensive version. You need to find the most up-to-date one you can as they quickly go out of date as current event and technology changes.
Cleaning Your Dogs Coat And Fur (7)
After you have chosen your comb, grooming should happen often and you should do it thoroughly each time, ensuring all knots and angles are removed, if you haven't yet combed your dog's fur then it may be difficult to start so do a bit at a time to ensure you don't discourage your dog and make them not like the grooming process.
Five Ways To Get Your Customers To Buy From You Again And Again (8)
You could be the only speaker, or you could line up expert speakers to present to your audience. Then you make a commission on all the back-of-the-room sales your presenters make.
Making More Money With Two-Tier Affiliate Marketing (9)
As long as you can refer new people to join the programs, you will be able to make money. Consequently how much you are going to earn will be connected to how well you are referring people to join and how well the second-tier is selling the products.
Buying The Best Houston Land For Sale (10)
Land ranges from small one-home plots to vast tracts of unspoiled land, but unfortunately there is not a lot going in the middle of that range. For those looking to build their own small home there is plenty of Houston land for sale in some very enviable positions.