The unstable economy, that is a result of the recent recession, has brought many people to their knees. Many South Florida people lost their jobs, witnessed their own businesses close, and as a result, had to deal with difficult financial times. A good amount of people also lost their homes to foreclosure. It has been a catastrophic time for a good amount of the population, as losing a home is always devastating. Foreclosure, however, is not the only way out. In fact, there are solutions that will have a much less negative impact on homeowners. Homeowners can try to sell their own properties, but it is difficult to do so for the purchase amount, or at least the mortgage loan amount, in these trying times.
The fact is, there are numerous people in the same situation trying to unload their own properties without losing the shirts off their backs. One has to come to the proper solution in order to lessen the effect it would have on one’s credit score. Short sales are one solution that every homeowner should be looking at. However, there are certain criteria that need to be met in order to qualify for this type of solution. Because the housing market bubble expanded so quickly and purchasing a home was so simple, it was inevitable for this bubble to burst. Unfortunately, upon the bursting of the bubble, people found themselves with properties that were worth much less than the mortgage loan.
That is the first criteria that must be met in order to qualify for such a sale, i.e. the property value must be below the amount of the mortgage loan. The individual homeowner must also be behind in the mortgage payments and prove that there is difficulty in making such payments. Furthermore, the homeowner must get the approval from the lender because it is the lender who will lose out in this type of the sale. If you are wondering why a lender would even consider this as a solution, it has to do with simple calculations whereby a foreclosure is much more costly to a bank or mortgage lender. In many cases, the lender will negotiate splitting the losses, although it is not always possible, depending on the financial situation of the homeowner. Special documentation must be completed and presented to lenders to approve this type of sale.
The process may be complicated! Linda Martignetti is a real estate agent in South Florida that specializes in short sales. Linda can help homeowners through the entire procedure. If you are still contemplating if a short sale is best for you, don’t feel overwhelmed! Contact Linda today!