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How to do a Short Sale on Your Underwater Mortgage and Avoid Foreclosure

Guest post by: Bud Gragg

Article Overview: We know that things can look pretty bleak when you're faced with an underwater mortgage, especially if you're out of a job or your business isn't doing well. But the most important thing to remember is that you do have options. You don't have to be tied to that underwater mortgage until you're forced into foreclosure-you can short sell it and get out!

How to do a Short Sale on Your Underwater Mortgage and Avoid Foreclosure

We know that things can look pretty bleak when you're faced with an underwater mortgage, especially if you're out of a job or your business isn't doing well. But the most important thing to remember is that you do have options. You don't have to be tied to that underwater mortgage until you're forced into foreclosure—you can short sell it and get out!

A short sale is a process by which you get your mortgage lender to agree to allow you to sell your house—and then the lender will take the amount you're actually able to get for it as opposed to the amount you still owe on your mortgage.

With a short sale, everyone wins a little and loses a little. You lose your house. You take a hit to your credit rating. The bank loses the opportunity to milk you for every penny of the mortgage.

But on the other hand, you avoid having to manage your way through a foreclosure. And the mortgage lender doesn't end up owning yet another property. And believe us, mortgage lenders can't cope with the ones they already have!

It can be tricky to get your mortgage lender to agree to let you off the hook in this way. It helps if you have only one mortgage on the house, but it is possible with two mortgages and sometimes even three! You'll have to show financial distress—not too hard during this economy!

And you're going to need to hire a Realtor—don't let your mortgage lender choose one for you! Your Realtor is there to represent you in everything from negotiating a short-sale deal with your lender to helping determine the actual value of your house. Not all Realtors are created equal, especially when it comes to a short sale. But, don’t fret, we are happy to help you find a professional, certified, short sale Realtor who specializes in your area. Just contact us.

Another advantage you have is a new federal government program called Home Affordable Foreclosures Alternatives, or HAFA, which has been set up to make it easier to short sell houses. There are time limits involved, and both the mortgage lender(s) and homeowners can actually come out with some extra money if they qualify for the program!

And, obviously, your Realtor is going to be very helpful when it comes to finding the true value of your house and setting a realistic price. By going with your Realtor's recommendation and selling your house for as close to what it's worth as possible, you'll be able to move forward with your short sale and onward to the rest of your life, much more easily.

Now, your Realtor may have to do some convincing to get your mortgage lender to allow you to do a short sale of your home. Lending institutions are just like any other large business—they move slowly, and most of them haven't thought their way through to the fact that underwater mortgages and foreclosures are going to be with us for at least another few years.

The lending institutions would very much like to go back to the old days when they only had to deal with maybe 1% or 2% of the number of foreclosures and short sales that are happening now.

But don't let the attitudes you run into at your mortgage lender discourage you. Don't let the lender's employees make you feel like a loser or a bad person. Remember that this is not the end of your world.

At worst, you'll be able to live in your house without having to pay on your underwater mortgage while you wait for a short sale. At worst, you'll be able to save money on your underwater mortgage while delaying an inevitable foreclosure. Either way, you and your family win.

Related Articles
  The Underwater Mortgage: What to Expect in Pre-Foreclosure-and Beyond
  Underwater Mortgage Solutions: What Is a Short Sale?
  Rebuilding Your Credit after Foreclosure on an Underwater Mortgage
  Short Sale? Foreclosure? Options for the Underwater Mortgage Holder
  Where to Look for Help for Your Underwater Mortgage
  How Long Can I Stay in My House and Other Underwater Mortgage Questions Answered
  Underwater Mortgage Loan Modification: Just a Band-Aid?
  LTV: The Key to the Underwater Mortgage
  Looking for a Simple Short Sale Definition? Here It Is!
  Need Underwater Mortgage Help? Here’s Where to Turn
  Don’t Be Fooled Again-Avoid Underwater Mortgage Advice Scams
  Short Sales 101: What You Need to Know
  Don’t Look Back and Other Tips for Life after Foreclosure
  Tips on Avoiding Foreclosure
  What to Do before Foreclosing on or Short Selling Your Underwater Mortgage
  Underwater Mortgages: The Inside Story
  Short Sale Training Boot Camp for the Underwater Mortgage Homeowner
  The Most Common Underwater Mortgage Mistakes-And How to Avoid Them
  How to Do a Short Sale and Why
  Underwater Mortgage Foreclosure Options- Yes, You Have Them and Here’s What They Are

Article Tags: bank short sale, home short sales, house short sale, how to do a short sale, how to short sale, mortgage short sale, short sale, short sale definition, short sale foreclosure, short sale help, short sale information, short sale process, short sale training, what is short sale
Referred by: http://www.meetkarennewman.com/



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Re: Hi - Thanks guys! I have been helping Real Estate and Mortgage professionals generate leads from the Internet for 5 years now!. I'd be glad to exchange some ideas. Have a great day=)
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