Short sales have saved many families from the pain of foreclosure. Of course, short sales aren’t just a tool for helping to stop foreclosure. You can use them in other situations when paying a mortgage just isn’t feasible any longer. If you feel that you may be in danger of foreclosure, working with your lender to negotiate a short sale can help you in lots of circumstances:
● Losing a job. Unemployment can be extremely challenging when you own a home. Paying a mortgage may no longer be possible. If you’re now unemployed and you don’t feel you have another option, working with your lender to figure out a short sale may save you – it may help stop foreclosure before the process even gets started.
● Moving to another home. If you’re no longer going to be living in the home and you’ve been trying to sell it to no avail, you might be able to work out a short sale for your property. This can keep you from having to pay two mortgages at once. Of course, your first course of action should be to sell the home, but in some stagnant markets, a sale at the market rate is impossible.
● Instead of home loan modifications. While home loan modifications can be a great option in many situations, you might be concerned about your ability to make even reduced payments, or you might be worried about future increases to your payment. In either case, get in touch with your lender to see if short sales might be an option for you.
Getting the bank to agree to a short sale is easier if you contact them as soon as you realize you’re going to have problems paying your mortgage. The longer you wait, the harder it can be to stop foreclosure and initiate the process. Contact your bank as soon as you can, and speak with a lawyer if you’re considering a short sale. A lawyer will be able to help you figure out the legalities and fine points of short sales.
