If you are one of the many who are facing foreclosure, you should consider a short sale. But only if the short sale is handled by an investor who is well versed with the fundamentals of the short sale and is on the up and up. You should know something about a short sale before you proceed with this legal maneuver that can get you out of your mortgage obligation practically unscathed.
An investor will find out about your pending foreclosure because it is public knowledge. It is a lien recorded against your home and is public record, just as anything recorded against a piece of property is pubic record. You will then be besieged with investors who will offer you a way out of your predicament.
Because you are most likely anxious about the short sale, you will want to help. And fast, too. Do not fall for the first investor who comes your way. Take a look at the options that are before you. You can find several different options. The one that you want is one that will allow you to leave your home, not be bound by any future consequences of your mortgage and be protected against judgments. Just because you sell your home to an investor, a lender can still go after you for judgments for legal fees and for the difference in the price of the home. If you owe $300,000 on your home and a short sale investor offers to buy it from you for $250,000, the bank can still seek a $50,000 judgment against you, plus legal fees. This can cause you to wind up in bankruptcy court.
A good short sale investor will be able to work with the lender to negotiate a good sale of the property leaving you free and clear. They should not, and this cannot be repeated often enough, charge you for this service. They are going to get a house that is worth more than what they are paying for it and are going to be able to make a profit. The investor will work with the lender to negotiate the sale of the property and leave you free and clear, ending your obligation and releasing the mortgage on the property. If you have any questions, you should ask an attorney.
An attorney is probably your best bet when you are dealing with the short sale process. They will be hired to protect your best interests. Beware of any short sale investor who will not work with you if you work with an attorney. Beware of anyone who tells you that you have to sign papers right away. And never pay for the advice.
The short sale investor will look for a home that has a mortgage that is not as much as the market value of the home. They will negotiate with the bank to stop foreclosure as this can be very costly to the bank. And time consuming. The bank will be convinced to take the loss and move on, recouping some of their loss. You may be able to walk away from the situation free and clear. You will lose your equity, but you will not have a black mark on your credit history. And you should not have to file bankruptcy so that you can get rid of any judgment against you.
The short sale can be your answer to a foreclosure problem, or it can get you in deeper. Talk to your attorney about your short sale opportunity before you sign any papers and protect your interests. You may have the chance to start over again.
