Unable to Make Your Mortgage Payments?

If you're a homeowner & you've asked yourself any of the questions below,  I can help.

Do you owe more than your property is worth & you can't afford the payments anymore?  Have you tried to modify your loan only to find your payments are still too high? Are you tired of the bank calling you or having to borrow from friends & family in order to make the next house payment?

visalia real estate, visalia foreclosures, visalia homes for sale, visalia real estate agent 

First and foremost, a short sale relieves the stress of being in foreclosure and being hounded by the mortgage lender; and it allows you to get rid of your big mortgage payment and move on with your life. A short sale allows you to stop the foreclosure and get a fresh start. This is the primary benefit to you.

A short sale also prevents additional damage to your credit. Having some late payments and a foreclosure filed has already done damage to your credit. However, a completed foreclosure will do much more damage and lower your credit score tremendously. A short sale results in the mortgage actually being paid off, which reflects positively compared to a foreclosure. Also, it is important to note that the short sale does not cost you any money. All commissions, title and escrow fees are paid by the lender as part of the short sale approval.

What is a Short Sale?

A Short Sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and the lender(s) agrees to accept less than the full amount owed to satisfy the debt and allow it to be "paid off", short. Lenders approve short sales and accept the resulting loss in an effort to avoid bigger losses  through  foreclosure. Normally in a short sale, the existing lender pays virtually all sales costs, including commissions, escrow & title fees. It's a way to get your home sold, your loan(s) paid off and help you avoid foreclosure.

Could a Short Sale be right for me?

With the abundance of people facing the possibility of foreclosure, mortgage lenders are open to working with you rather than taking your home through foreclosure.  Mortgage companies aren't in the home selling business, they're in the lending business and they need to minimize the potential loss on your loan. If you find yourself in a situation where you're unable to meet your mortgage payments due to a hardship, it's advantageous to a lender to try and work with you and settle the matter by doing a short sale instead of taking your property through foreclosure which would result in an even bigger loss to them.

What would be considered a hardship?

 In most cases as so long as the hardship is real and the lender believes the loan is likely to become delinquent , the short sale request will be processed by the Loss Mitigation Department. Crucial to getting the Loss Mitigation to accept a hardship is to submit a hardship letter. The hardship letter sets the tone for the entire short sale package.

Here are a few of the "hardships" that are quite common and frequently accepted by mortgage lenders:

• Family illness or injury
• Illness or injury in the extended family – particularly if it forces relocation
• Job loss or significant income loss
• Divorce or split of domestic partners
• Adjustment in mortgage payment or unforeseen increase in living expenses

How long will I have to wait before buying another home?

• Foreclosure or Deed-in-Lieu of Foreclosure
  If you want to buy another home after foreclosure you'll end up waiting about 36 months before a lender will offer any kind of favorable interest rate.
• Short Sale
  The good news for short sale sellers is the wait is much shorter before buying another home. You can usually buy again in about 18 months at a good interest rate.