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RSS FeedIf you are behind in your mortgage payments and are losing your house due to foreclosure, think about doing a short sale. A short sale is “… when a lender agrees to accept a home sale at a price below market value and below the money owed on the loan”. In today’s economy, most lenders will agree to “short sales” rather than go through an expensive foreclosure process.
Short sales allow you – the owner – to walk away from your house free, in most cases, of mortgage debt. In addition, your credit score is not damaged by the reporting of a home foreclosure.
Foreclosure can ruin your credit scores for up to 10 years. When it comes to the effect on your credit scores, having a few late bills is to foreclosure what having a leaky faucet is to burning down the house.
“When a foreclosure is filed against a property owner, that person’s credit will go down 100 points,” Airan-Pace says. “At the foreclosure sale, it goes down another 100.” (From http://articles.moneycentral.msn.com/Banking/HomeFinancing/short-sales-are-the-new-foreclosure.aspx)
Exploring Short Sale Options
Because of its complexity, pick a knowledgeable real estate agent to explain and/or process a short sale for you.
Real Estate Agencies
Throughout the country, real estate companies have increased the number of short sales that they process because of the current economic recession. Many of these companies employ agents that have been certified as specialists in Short Sales and Foreclosures by the National Association of Realtors; however, certification should not be the main criteria you should use to decide what agency to work with.
What Does It Cost You?
Real estate agencies offer short sales services to the distressed homeowner for free. Pre-approved commissions for successful transactions are paid to the real estate company by the lender.
Posted In Blog
This entry was posted on Monday, August 9th, 2010 at 7:40 pm and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.