RENE FUENTES
(818)201-7743
DRE 01474068
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Short Sale: Is It Your Best Option?
Chances are that you have come to this page because you may be experiencing a hardship managing your mortgage loan and are considering foreclosure. The good news is you have options and Short Sale is one of them.
Simply put, a short sale is an option to foreclosure, which usually carries fewer long-term ramifications for you and your credit standing. Many California homeowners, indeed homeowners across the country, are choosing Short Sale as a resolution for handling a mortgage loan crisis.
Here's how it works:In an approved Short Sale, your bank agrees to accept a discount on your mortgage loan to allow the sale of your home to take place, often based on market value, in an effort to avoid foreclosure or a bankruptcy. For example: Let’s say you have an existing first mortgage of $500,000 and the market value of your home is $350,000. In a Short Sale agreement, your lender would agree to forego the difference of $150,000 in mortgage debt you owe, accept an offer of $350,000 and your home is sold.
How Do Banks Determine eligibility?In most cases, lenders will base their decision on a Short Sale eligibility using a formula, which takes the current market value of your home or "BPO," compares that amount to what they would likely receive from a Short Sale and what they may be paid if your home is sold at auction as through foreclosure. Typically, a foreclosure includes significant extra costs to the lender, such as maintenance and auction fees, so in general, short sales are less expensive to banks and often a more advantageous option.
What are the Advantages of a Short Sale for You as a Homeowner?A foreclosure will damage your credit rating for about 7 years; a Short Sale is less damaging and carries a shorter impact time on your credit rating. Major banks are encouraging Short Sales over Foreclosure because of changes to underwriting policies by Fannie Mae (FNMA). While the wait time for eligibility for another FNMA loan after foreclosure is five years, with a Short Sale it is only two.
What if you have a second loan on your property?In foreclosure, a second Home Equity Line of Credit (HELOC) or other loan on your property is usually not deleted from your debt load and the mortgage bank may use legal tactics to collect on that debt. In a Short Sale, however, we can work with all sides to either reduce the HELOC debt, and in some cases, but most of the time I will negotiate to eliminate all.
A Dignified Solution:In a Short Sale, your home is sold just as if it were a regular sale-there are no foreclosure signs on your front lawn; no sheriff lock out. Your neighbors never have to know your situation. It is truly a smart solution, and a dignified one.
What if You Are in Foreclosure Now?If your lender or bank has already begun foreclosure proceedings you do not have a lot of time to act, but there is a possibility you may have those proceedings postponed and transition to a short sale. To find out if you qualify for Short Sale, or to simply begin the Short Sale process, please call me at (818)201-7743 or e mail me at rmfuentes76@yahoo.com
Fine Print:A Short Sale is one of the most complex of all residential property transactions, so it is imperative that you work with an experienced agent. My team of Short Sale experts is prepared to negotiate with your mortgage lender on your behalf. If you would like to speak to someone immediately about a Short Sale please call me at (818)201-7743 or e mail us at rmfuentes76@yahoo.com
My team of Short Sale experts is prepared to negotiate with your mortgage lender on your behalf. If you would like to speak to someone immediately about a Short Sale please call me at (818)201-7743 |
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