I Am Facing Foreclosure, What Should I Do?

by | Jun 25, 2013

Today, hardworking people are forced to make tough decisions. The direction you take as a homeowner today will affect you financially for years to come.  If you or someone you know is forced to make these decisions, call us today!  We can help you weigh all of the options. Including the option to short sale your home! The right information leads to the best outcome. Get the facts and make the right turn. You can own your own home again. Get your financial future back on the road to recovery!

 

Short Sale 411

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in policy have also improved the chances of getting a short sale approved. This seems simple enough, but it’s a complicated process that takes the expertise of experienced professionals. Together, we can identify all possible options and we can assist you in the quick execution of a short sale transaction. DON’T MAKE THE WRONG TURN! AVOID FORECLOSURE TODAY. DON’T WAIT ANY LONGER! WE CAN HELP!

You can own your own home again. Homeowners who short sale their homes normally have to wait at least two years after closing the short sale to qualify for a mortgage. The time frame and requirements vary depending on the type of the loan and the down payment. At a minimum, you will be required to wait at least 2 years, before qualifying for another home loan, after performing a short sale.

This is a great time to begin rebuilding your credit. Lenders generally require a FICO credit score of at least 680 for conventional loans. After a short sale, work to improve your credit scores and financial situation while you wait to become eligible for a conventional mortgage. Check your records after you complete the short sale. Make sure that your short sale is reported as a short sale, and not a foreclosure.

If your servicer incorrectly reports as a foreclosure, you must correct that error. Buyers with a foreclosure on their record typically must wait 5-7 years before they can qualify for conventional mortgages. But, this all depends on the circumstances of the foreclosure, the foreclosure waiting period, your ability to increase your credit score and the type of loan that you are prepared to apply for.

If the foreclosure was the result of documented extenuating circumstances, the Fannie Mae waiting period will only be three years, rather than seven, before you can apply for another mortgage.

 

Short Sale Incentives

If you perform a short sale through the U.S. Treasury Department’s Home Affordable Foreclosure Alternatives (HAFA) program, you as a homeowner can actually receive $3,000.00 cash back toward location expenses. This is part of the government’s attempt to promote short sales instead of foreclosures.

Lenders may also have incentives which can be up to $30,000.00 in addition to the HAFA $3,000.00. Make sure you use a Realtor® who is experienced in short sales. When it comes to real estate transactions, you are dealing with a very large financial investment. If you had a very large income tax problem, you would hire an experienced CPA. If you had a large financial legal question, you would hire a very experienced attorney. When you are dealing with one of the largest financial considerations one makes, such as your home, you must consider the professional assistance of a REALTOR® who is very experienced in negotiating your short sale, on your behalf. If you are facing foreclosure, and are interested in performing a short sale on your home…We are here, we are experienced, and you pay us nothing. Contact us today. It is our honor to serve you!

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