A growing number of homeowners find themselves in a very difficult position when the balance on their mortgage is higher than the value of their home and they are no longer able to meet their mortgage obligation. Making the right decision on how to reach a successful resolution to your mortgage problem requires good information. Whether you are seeking information on how to keep your home and avoid foreclosure or the best way to sell the property and get out from under the debt, our firm is able to assist you in a resolution.

If you are interested in a loan modification or a forbearance agreement to avoid foreclosure, we can assist you with resources available on how to make contact and how to proceed. If you are having problems getting in touch with your lender, or if you believe you are not getting the help you need, we will assist you in getting in touch with the lender representative who can help.

If you need to sell your home and the balance is too high and you do not qualify for a forbearance agreement or loan modification, the best option is to work out a resolution with the lender that allows you to sell the property.

Our team specializes in the process of negotiating and selling homes with mortgage loan balances that are higher than their value. The short sale may be the best solution allowing you to move forward without having to worry about the house or the mortgage. Your credit will be protected from foreclosure. Your home gets sold and the mortgage is fully paid off.

Short Sale Option

The short sale may be the best solution allowing you to get out from under the debt and move forward without having to worry about the house or the mortgage. Your credit will be protected from foreclosure. Your home gets sold and the mortgage is fully paid off.

There is no upside to the foreclosure process. In a foreclosure, the lender advertises and takes the property. You will lose the property and the lender can seek to obtain a judgment against you for the deficient balance in addition to the cost for the legal action. Your credit will be impacted for a greater period of time and it will be very difficult to obtain other credit. This option should be avoided.

The short sale option helps you rebuild your credit faster, most likely avoid a deficiency judgment, and avoid the negative consequences of the foreclosure process.

Short Sale Qualifications

Financial Hardship: Lenders will approve a short sale transaction where the seller can show a financial crisis that is forcing them to sell the property. Those hardships typically include loss of employment, increase in mortgage interest rate, lack of funds, medical or personal problems, increased taxes, divorce, loss of rental income and vacancy. The lender will ask for financial documentation to show that they do not have the assets needed to cure the deficiency between the sales proceeds and the outstanding mortgage amounts.

Market Value of the property is below the loan amount: Market value must be established via the marketing of the asset over a period of time. Marketing efforts must be documented; the market price is determined through a current market analysis. The marketing plan should include input into the local Multiple Listing Service, documented showings, incremental price decreases as the marketing dictates. Lenders typically like to see a marketing plan which would support the offers presented.

Arms Length Transaction: Due to the increase in short sale fraud; many lenders are now requiring all parties to sign a Short Sale Agreement; all parties include the real estate agent as well as the buyer and the seller. This agreement states the transaction is not a sale to a family member or a friend. There can be no outside agreements. All parties must disclose the full intent of all parties to the transaction.

Loan Modification Benefits: If you want to stay in your home and believe that with assistance from the lender you will be able to remain current on your future mortgage obligation there are two options available to you. Both allow you to stay in your home, avoid foreclosure, not be forced to sell the home in a short sale, and reduce your monthly payments.

Forbearance Agreement: If the financial hardship or setback is only temporary, your lender can provide assistance to help you get back on track. The lender can offer a repayment plan for the delinquent amount by adding to the regular payment over a period of time or by adding the delinquent amount to the end of the loan.

Loan Modification: The lender and the homeowner agree to modify the original terms of the mortgage, typically by reducing the monthly mortgage payment so the homeowner can afford the payments. The modified terms may be temporary or in some cases they may be adjusted for an extended period of time. You will need to provide documentation to the lender that once the modification is complete, you will be able to remain current on the mortgage and the problem is resolved.