With today’s tight economic conditions mortgage payments are stressing many families to the brink of either foreclosure or bankruptcy. There are other options available to you as a consumer out there.
Loan modification is actually a good option if you are planning on staying in your home. This is where the Mortgage Company will work with you in making changes to your current loan. Another choice is to do what is called a Short Sale.
A short sale is when your lender agrees to let you sell the home for less than what is owed on it so you don’t have to face foreclosure. There are consequences when doing this as well.
You will get many different opinions on how to handle a short sale. The best way is to contact a professional that has dealt in short sales. I also recommend you get legal advice as to your rights, and maybe consult your accountant as to the tax ramifications.
In the upcoming weeks I will be doing a variety of articles on what to do when working with your lender on a short sale.
The first and foremost thing is to talk with your lender and get a direct contact person or supervisor that will handle your case. If you feel that you are not qualified to do this, contact me. I will ask you to put a letter together to authorize us to speak to your lender on your behalf and get the process going.
This process can be very time consuming and patience will be a key factor!