A California Short Sale Can Mean You Avoid A Foreclosure
- By Lance Thorington
- Published 06/9/2009
- Selling
- Unrated
Virtually anything is better than a foreclosure, except perhaps a bankruptcy, but some experts believe that a foreclosure might be worse than bankruptcy. So essentially, what we are saying is, if you should ever find yourself in a position whereby either a bankruptcy or a foreclosure might be looming, it might be better to cut your losses and run. So a California short sale might mean that you can avoid a worse situation.
The old adage applies here, "he who fights and run's away, lives to fight another day". In California as in many other states in the US, banks are allowing short sales to take place more than ever before. It rings true that they should allow this as the foreclosure crisis still looms stronger than ever for many US property owners.
People who are unable to afford to pay their home loans and are on the verge of losing this property to foreclosure should approach their banks for refinancing, loan modification, and if all else fails, the short sale. Selling your property in this way will prevent the foreclosure process from taking place, and prevent the property owner from completely losing their credit rating.
In the short sale process you lender will look at the figures, assess what it is going to cost them to foreclose, and see if the possibility of this method will allow them to come away from the deal with the largest possible amount owing to them. The implication is that the market value of the property is less than what the owner presently owes on it. As three quarters
of housing prices have dropped so much in the US, this is the case with many home owners.
The best route to take when considering a short sale is contact a real estate agent who deals with these types of sales. There are many! They will guide you through the processes required, as well as provide a liaison with the bank which has the lien over your mortgage. The bank must give their permission for this kind of sale to take place as we said earlier.
You will have to provide your banker with credible reasons why you are not longer able to afford the mortgage on your home. This is known as "proving hardship". You will have to give them a letter of explanation and proof such as bank statements, credit card bills and other creditors accounts, W-2's and anything else you may have to prove that you genuinely are no longer able to meet the demands of your mortgage repayments.
Once permission has been granted for the short sale to take place, the bank and real estate agent will take over the process and the property will be advertised as a short sale. Short sales provide valuable investment opportunities to people who are currently trading in the real estate market.
Short sales are generally bargain properties for investors. However the home owner in many instances is not let off the hook in the short sale. They are often sought to repay any outstanding loan balances and the bank in some states may pursue a default judgment for this. However they are given a breathing space as the foreclosure does not take place and for some time at least, they are able to save the majority of their credit rating.
The old adage applies here, "he who fights and run's away, lives to fight another day". In California as in many other states in the US, banks are allowing short sales to take place more than ever before. It rings true that they should allow this as the foreclosure crisis still looms stronger than ever for many US property owners.
People who are unable to afford to pay their home loans and are on the verge of losing this property to foreclosure should approach their banks for refinancing, loan modification, and if all else fails, the short sale. Selling your property in this way will prevent the foreclosure process from taking place, and prevent the property owner from completely losing their credit rating.
In the short sale process you lender will look at the figures, assess what it is going to cost them to foreclose, and see if the possibility of this method will allow them to come away from the deal with the largest possible amount owing to them. The implication is that the market value of the property is less than what the owner presently owes on it. As three quarters
The best route to take when considering a short sale is contact a real estate agent who deals with these types of sales. There are many! They will guide you through the processes required, as well as provide a liaison with the bank which has the lien over your mortgage. The bank must give their permission for this kind of sale to take place as we said earlier.
You will have to provide your banker with credible reasons why you are not longer able to afford the mortgage on your home. This is known as "proving hardship". You will have to give them a letter of explanation and proof such as bank statements, credit card bills and other creditors accounts, W-2's and anything else you may have to prove that you genuinely are no longer able to meet the demands of your mortgage repayments.
Once permission has been granted for the short sale to take place, the bank and real estate agent will take over the process and the property will be advertised as a short sale. Short sales provide valuable investment opportunities to people who are currently trading in the real estate market.
Short sales are generally bargain properties for investors. However the home owner in many instances is not let off the hook in the short sale. They are often sought to repay any outstanding loan balances and the bank in some states may pursue a default judgment for this. However they are given a breathing space as the foreclosure does not take place and for some time at least, they are able to save the majority of their credit rating.
Lance Thorington
Expert author Lance Thorington shows you how a California Short Sale works. Visit http://nphsrealestate.org/short-sale/ now and find out how this non profit organization helps you to avoid home foreclosure!
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