Even though accomplishing a short sale will not really enable you to still live in your current home, it can offer you another alternative to avoid foreclosure and better handle the possible consequences to your credit history and overall humility of having to let go of ownership.
The advantages are much more than any possible downside, particularly in situations where homeowners owe more than the value of their home.
The HAFA Program mainly offers alternatives to foreclosure for homeowners who occupy their homes.
With this program, you should be able to transition well to another home that is easier on your budget and take out a big chunk on the mortgage debt you owe.
In numerous cases, a short sale is almost always a must.
If you are curious as to whether it is possible for you to sell through a short sale, let's take a look at the main points that might make you a good candidate for programs like HAFA.
Is A Short Sale Possible In Your Case? This means selling your mortgage property at a reduced cost.
Remember, banks would prefer to get something out of your home compared to nothing at all.
You can present a short sale to the lender so that both parties can make the most out of the end agreement.
To be sure you get benefited on your end, it would be wise to have a Certified Short Sale Realtor negotiate for you.
You must have a Realtor so why not someone certified and experienced.
Alternatives are now offered to homeowners who simply ask for a short sale.
Moreover, they are offered to those who are not eligible for a trial mortgage modification under the MHA Program and do not favorably conclude the trial term for their modification.
Finally, homeowners are entitled to such alternatives if they have missed a minimum of 2 consecutive payments during the modification term.
Keep in mind not all lenders will agree with a less than total amount due, particularly if it would make more "business sense" to proceed with a foreclosure.
Thus, you should carefully go over your qualifications.
You can indeed go over this with your realtor and for more assurance, consult your attorney on this matter Where To Begin? First, make sure you qualify - the general rule is to present a hardship on your current mortgage, as mentioned earlier.
But you must also be willing to cooperate with the proceedings.
Be familiar with the tax implications involved.
There is now a law that is most probably going to free you from any tax implications of a short sale - this is something you should talk about with a CPA or tax attorney.
However, a good realtor should be familiar with this as well.
Be fast and efficient.
Since your closing date may not be concrete, you have to be ready to leave your home right away when necessary, so make some arrangements ahead of time.
Get the help of an experienced realtor.
Don't be too concerned over the price presented to you.
If a realtor wants to establish a low price on the property, there is a purpose behind it.
For one, you can get an offer very fast.
You'd want a buyer who will be around throughout the long process and negotiations.
Confirm the value of your home.
Since there no fees for this process your realtor or broker should give your lender an estimate of closing costs.
Obtain the amount owed against the house.
Subtract the whole amount owing against the home from the approximate proceeds of the sale.
This will be a negative number.
If everything goes smoothly, the lender will agree on a short sale.
Whether it's a short sale Scottsdale, short sale Phoenix, or any other type of short sale made in the state, your entire goal is to have the lender agree on your short sale so that you can move on to finding a new home that is more affordable to you.