HOUSE WORTH LESS THAN YOUR MORTGAGE?
A SHORT SALE MAY BE YOUR ANSWER!
CALL ROGER at 278-7779 to DISCUSS YOUR OPTIONS AND SAVE YOUR CREDIT

SHORT SALES AVOID FORCLOSURE AND MAY SAVE YOUR CREDIT
by Roger Perkins

Owners who are behind on payments, or own a home worth considerably less than their mortgage should consider all options open to them to save their credit and money at the same time.

Your first options should be to request a loan modification, which is simply a change in terms of the loan, which usually means lower monthly payment without credit damage.

If the homeowner has a temporary cash flow issue, a request for a loan forbearance is the next option. This reduces or delays payment until the loan can be brought current in the future.

While these two options serve as a practical alternative to forclosure, they still leave the homeowner with the same burden of debt.

The more favorable option is to negotiate a short sale with the lender. A short sale is an agreement to allow the home owner to sell the home for less money than is owed on the mortgage. The lender will take the proceeds from the sale as settlement for the mortgage debt. Not only is the homeowner's credit protected from negative reports when engaging in a short sale but, he or she is released entirely from the debt associated with a defaulted loan. What can be better than getting out clean and not having to deal with terrible credit? The lender also benefits by not having to deal with the cost of processing the home. It is a win-win situation.

Whether a short sale or one of the other alternatives is good for the homeowner depends on each unique situation. Before discussing any of the options with your bank call Roger Perkins at 278-7779 to discuss your unique circumstances. Roger is trained to help with any of these options and can negotiate directly with the bank, prepare the numerous documents required for the short sale, and of course market your home to a prospective buyer.