|
Tampa Bay
homeowners who are behind on their mortgage and owe the bank more than
their home is worth may benefit from a short sale.
If done
properly, a short sale will stop the foreclosure, minimize the damage
to the Tampa Bay
homeowner's credit, and protect them from future liability from the
bank.
A short
sale means the seller's lender is accepting less than the mortgage
balance to release an existing mortgage. Just because a property is
listed with short sale terms does not mean the lender will accept your
offer, even if the seller accepts it. Lender acceptance may depend on
several elements of your offer as well, such as the percentage of your
down payment, closing date, other negotiated terms, and possibly
whether or not you are pre-approved for a mortgage. The seller makes no profit on the sale but avoids many of the problems that would come from a foreclosure.
For some lenders, the seller will need to be in default on their
mortgage and must have stopped making mortgage payments, before a
short sale will be considered. With other lenders, you just need to
show a hardship
You can't
just decide you're going to sell your home at a loss by asking your
lender for a short sale, and expect them to readily agree. Sellers
need to provide a hardship letter to the lender. They have to prove
that they are don't have the means to continue making the mortgage
payments. The hardship is usually a result of loss of income - a
divorce, illness, medical expenses, loss of job, etc.
It is
important to keep in mind is that the short sale process can take a
considerable amount of time, depending on the situation, the number of
lenders involved, and the investors that may have purchased your
mortgage(s) from the lender. As of April 5, 2010 the Home Affordable Foreclosure Alternatives
(HAFA) program requires some lenders to follow certain guidelines
intended to expedite the sale process. For example, those lenders
following the HAFA guidelines will be required to respond with an
acceptance or denial of a written contract within 10 days.
To find
out if you qualify for a Home Affordable Modification - Click
Here
|
