Short Sales – Foreclosure Prevention Plan
The phone rings, but no one picks it up. You know who it is, but you don’t want to talk to them, now or later. You know that they are calling about the mortgage payment. They all use the same dialogue. Have you sent out the payment already? Would you like to make that payment today? When do you think you will be making that payment? The worst thing to do is to ignore them and hope they go away.
If you have gotten one of these phone calls in the last 30 days, you may need to consider a short sale before you end up in FORECLOSURE. A short sale is the sale of a house where the proceeds fall short of your mortgage balances and fees. Some lenders will agree to accept a short sale in satisfaction of all your housing debts.
Attorney Arnold Streisfeld describes a typical scenario, “Owner now has legal fees, interest and penalties tacked onto their already bloated mortgage balance and the bank won’t take partial payment. They don’t have enough equity to qualify for a Loan, and besides that, their credit is taking a beating.”
If you know you are not going to be able to meet your next mortgage payments, stop what you are doing now and follow these steps.
- Call a realtor and verify the value of your property.
- Add up the costs of selling the property.
- Total all loans against the property. This is the amount owed.
- Calculate the estimated proceeds from a sale and subtract the total amount owed. On a short sale, this will be a negative number.
- Call your lender. Ask for a “Loss Mitigation Specialist.” They may direct you to a department. Talk to a manager or supervisor if you can.
- Ask the lender what its procedures are for a short sale. Some lenders will work with you by reducing the amount owed or making other arrangements. Other lenders will tell you that your debt is your responsibility.
- Sell the property.
It’s better to sell it short and end up owing nothing, than to be foreclosed, ruin your credit, owe money or be forced to declare bankruptcy. Your action today can save you pain and money tomorrow. Do something now. If you need help… AskRey.