Tweet

Underwater Mortgage Solutions: What Is a Short Sale?

Guest post by: Bud Gragg

Article Overview: Before we talk about short sales as a solution to your underwater mortgage, we want to give you a quick primer about the alternatives. That way you can compare short selling to the rest of the options you have when you're faced with an underwater mortgage.

Underwater Mortgage Solutions: What Is a Short Sale?

Before we talk about short sales as a solution to your underwater mortgage, we want to give you a quick primer about the alternatives. That way you can compare short selling to the rest of the options you have when you're faced with an underwater mortgage.

Now for the purposes of this article, we're assuming that you can't afford to pay the monthly payment on your underwater mortgage anymore. That's the situation that most people who find our website find themselves in. With that said, here are some of the other options:

Applying for a loan modification can certainly delay or draw out a foreclosure, but fewer than 3% of homeowners actually qualify. And two of the available options will end up with you eventually paying more for your mortgage than you originally signed up for! But, if you can get the modification and when you do the math it makes sense to you, go for it.

You could give your mortgage lender a “deed in lieu.” This means you hand over the deed and the keys, and you walk away from the house. This is not a good option! Why? Because most mortgage lenders will hound you relentlessly about paying the difference between what they can sell the house for and the total amount of your mortgage. And because mortgage lenders aren't set up to be real estate offices, they will sell your house for pennies on the dollar just to get rid of it.

The next option is foreclosure. With foreclosure, you can keep living in your house mortgage-payment free until you get an eviction notice. You'll have to manage your way through a few years of less-than-stellar credit, but Kristin and I have been through this option, and it's worked out well for us so far. You may also have to worry about your lender coming after you for the difference between the eventual foreclosure sale price and the amount you owe on your mortgage.

So how is a short sale different? With a short sale, the mortgage lender agrees to let you sell your house and agrees to take the price you get for it as a payoff on the mortgage! And the right Realtor may be able to negotiate verbiage into the Agreement Notice (the approval on the short sale you receive from your lender) so your lender won’t come after you for the deficit. We bet you can see the advantages here right away.

You're out from under your underwater mortgage. You'll be able to live in your house payment-free until it's sold. And your credit rating won't suffer as much!

There's even a new federal program that might give you up to $3000 to relocate. It's about time the government started helping homeowners, isn't it?

Short sales do take some work on your part though. You'll have to hire an experienced, certified, short sale Realtor to negotiate with your lender. You'll have to provide lots of documentation to your Realtor, so they can pass it along to your lender. You'll also have to prove financial hardship.

This might all seem hard. But when you're dealing with an underwater mortgage on top of everything else, a short sale can be the best solution to your problems. At best, you sell your house and walk away scot-free. At worst, you delay foreclosure, sometimes up to a year or more.

Just be patient and don't fall under the illusion that short sales are, well, short. They can take up to a year, just like any other housing sale! But spending a year without paying on your underwater mortgage isn't a bad payoff for that kind of patience, is it?

Please don’t stress over finding the right Realtor to short sell your home. We can help. Just contact us and we will find a professional, certified short sale Realtor in your area.

Related Articles
  Don’t Be Fooled Again-Avoid Underwater Mortgage Advice Scams
  Where to Look for Help for Your Underwater Mortgage
  How to do a Short Sale on Your Underwater Mortgage and Avoid Foreclosure
  Short Sale Training Boot Camp for the Underwater Mortgage Homeowner
  Short Sale? Foreclosure? Options for the Underwater Mortgage Holder
  The Most Common Underwater Mortgage Mistakes-And How to Avoid Them
  Your Life or Your House: Key Questions to Ask Yourself If You’re Facing an Underwater Mortgage
  The Underwater Mortgage: What to Expect in Pre-Foreclosure-and Beyond
  Dealing with the Bank on Your Underwater Mortgage Short Sale
  Rebuilding Your Credit after Foreclosure on an Underwater Mortgage
  How Long Can I Stay in My House and Other Underwater Mortgage Questions Answered
  LTV: The Key to the Underwater Mortgage
  What to Do before Foreclosing on or Short Selling Your Underwater Mortgage
  More People Walking Away from Underwater Mortgages
  Need Underwater Mortgage Help? Here’s Where to Turn
  Coming Soon to Your Neighborhood: Falling Home Values Mean More Underwater Mortgages
  Looking for a Simple Short Sale Definition? Here It Is!
  Underwater Mortgage Loan Modification: Just a Band-Aid?
  Underwater Mortgage Foreclosure Options- Yes, You Have Them and Here’s What They Are
  Save Our Home: Mortgage Help for Struggling Homeowners

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/



Related Forum Posts
Re: Website Name Help - Its good that you have come up with the idea of setting up a website for your business. Now As it is into Business Solutions, I would recommend that you also include this into the name of the website. This will help you getting better results as far as SEO is concerned. You can start building a brand with this name. As you have already got the name booked, you can try changing it to something on the lines of Business Solutions as in azimabusiness or azimabusinesssolutions. Its a long name but still is good from the SEO point.
Help me name my moms business - I think Infinity Cleaning Services sounds better than Elite Cleaning Solutions... Why the Solutions? What is there to be solved? You simply get a rag with some Windex on it and wipe away.... plug the vacuum and Vac Away, get a mop and mop away. Stick to Infinity Cleaning Services... ICS sounds cool...
Re: What's in a Name? - Sale or promotion relies a lot in name chosen for product/business.
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=)
Internet Users Hbk http://www.internetscamsanonymous.com - Current site for sale of our handbook as a Clickbank product Welcome any and all feedback: Sale page Content Handbook Content Pricing Too Big Considering braking it to 2 volumes: Avoiding Scams Online and Doing Business Online and maybe ad 3rd volume related internet technology Kind of like selling preventive medicine!! Thank you in advance for your interest and comments


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Why Your Own Internet Marketing Website Is A Must

B2B PR – Planning for Success

Attracting Passionate Employees

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.