What are Short Sales and how can they help me.

Short Sales have become a hot topic recently with homeowners in distress and mortgage companies.  Short Sales have been around for many years and have worked well to avoid foreclosure.  In today’s Sub-Prime mortgage crisis, it is becoming a primary means of elliminating a bank debt. 

Question:  What is a Short Sale?

Answer:  A Short Sale occurs when a homeowner owes more on their property than the property is actually worth, but their bank agrees to accept less than what is owed as payment-in-full.  In other words, the bank is willing to take a discounted pay-off in order to avoid the foreclosure process.

Question:  Why are banks willing to do a Short Sale?

Answer:  Because the alternative is foreclosure, and the foreclosure process is usually far more expensive than the discount the bank takes and a Short Sale.

Question: What are the benefits for the homeowner is a Short Sale?

Answer:  The primary benefit to a homeowner who participates in a Short Sale is avoiding the devastating effects of a foreclosure on ther credit.  It the loan is VA quaranteed, the successful completion of the Short Sale protects their VA eligibility for future VA mortgage loans.

Question:  What is the impact on the homeowner’s credit for doing a Short Sale?

Answer:  A Short Sale is reflected on the homeowner’s credit report as something to the effect of, "Discounted Payoff, Paid-in-Full".  A Short Sale is far less damaging to the homeowner’s credit than a foreclosure of Deed-in-lieu of foreclosure.

If you are behind in your mortgage and possibly facing foreclosure, a Short Sale can be your answer.  To find out if a Short Sale is right for your, visit www.AvoidBankForclosureNow.com or call Bonnie at 770.606.0054.

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