Negotiate a Successful Short Sale
Are you having trouble making your house payments, or you have stopped making them completely? Have you tried to get your home loan modified but were turned down? Is your home worth less than what you owe, and you are ready to move on?
You have several options:
- If you want to try one more time to keep your home (even if you tried for a loan modification and were turned down), call me today for options to lower your principal and/or your interest rate.
- You can let the bank take your home (Foreclosure).
- You can negotiate with your bank and list your home for sale at a price below what you owe (Short Sale).
There are advantages and disadvantages to each.
With foreclosure, your credit report will be affected for 7 years, and the most recent Fannie Mae guidelines may restrict you from purchasing another home for 5 or more years. On the other hand, you may be able to stay in your home for a period of time without making mortgage payments, and you will not need to go through the process of negotiating with the bank or showing your home to prospective buyers.
If you choose to pursue a short sale, it can be a better solution for you and for the lender. One key to successful short sales is to negotiate with the lender ahead of time. A short sale may help you because the effects on your credit will be less (current guidelines allow you to wait only 2 years before applying to purchase a home), and in some cases you can negotiate credit repair as part of the short sale. Your lender may be willing to agree to a short sale because it will be less expensive for them than a foreclosure, and they will not have another foreclosed house in their inventory. In essence, you are selling the house for them.
Short sale negotiation can be time-consuming and tricky. Our expert negotiators who help with loan modifications can also help you negotiate a successful short sale. One of our negotiating teams has a relationship with Bank of America, and can often negotiate very quick sales with much better terms than the norm.
Please contact me for more information.
Note: There may be income tax implications with foreclosure as well as short sales, so be sure to seek the advice of your tax professional.