“What happened and how do I find myself in this situation?”

There are many reasons as to why people start falling behind on their mortgage payments; divorce, medical issues, job loss, rapid market depreciation, rising interest rates, etc., etc. The bottom line is that something went wrong and now something must be done NOW! Time is not on your side when facing this situation. It is normal to want to bury your head in the sand and wish it would just go away. It is normal to feel ashamed, embarrassed, and confused. We understand and want to help.

Many people will try to refinance but quickly realize that once you are even one payment behind that is no longer an option with most lenders. Loan Modifications are an option but are rarely successful. The lenders are now suggesting short sales to these homeowners in distress.

What is a Short Sale?

A ‘short sale’ occurs when a bank accepts a discount on a mortgage to avoid a possible foreclosure or bankruptcy. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history and the partial control of the monetary deficiency. Additionally, a short sale is typically faster and less expensive than a foreclosure. Many homeowners have been unfortunate enough to be living in homes worth less than they bought them for just a few years ago.

Most people do not realize exactly how damaging it is to have a foreclosure on their credit record. Many times, this will remain on ones credit for up to 10 years! A successful short sale will keep this from happening…allowing you to move on with your life and start to rebuild. Contact us today so that we can discuss your situation and help you to understand your options. There is NEVER a charge to the homeowner for our services…under ANY circumstances.