If you do not want to keep your home, then you need to consider your options. There are 3 options if you do not want to keep your home.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure. http://columbusohshortsaleadvisors.com/
Option #1: Do nothing and the lender forecloses on the house.
Option #2: Deed in Lieu of Foreclosure. I don't recommend this as detailed in yesterday's column on Deed in Lieu
Option #3 is a short sale. Here are the benefits a short sale offers over a Foreclosure or Deed in Lieu.
You will be able to buy another home in the future. Current Fannie Mae Guidelines allow you to purchase another house 2 years after a short sale.
Fannie Mae is the most common loan people get and most lenders have policies similar to them. After a foreclosure, the current Fannie Mae Guidelines require you to wait 5-7 years before getting a new loan.
How will a short sale or foreclosure affect my ability to get a loan in the future? After a foreclosure any future application will require you to answer the question, "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" you'll have to answer that question yes.
If you short sale, then you can state "No" because you short sold your home. You only have to say yes if the bank completes the foreclosure.
How will my Credit Score be impacted? After a short sale, the mortgage is normally reported as "paid in full, settled." So the biggest impact will be from late payments.
This lowers your score as little as 50 points if all other payments are being made. Most lenders review late payments in the last 12-18 months. After that, they become less important.
After a foreclosure your score is typically lowered by 250 to 300 points, or even more. This often stays on your credit score for over 3 years.
Will I owe my lender any money for the shortfall? Few lenders ask for a promissory note on a short sale. In the rare case they do ask for one, then they usually request the borrower repay them a percentage of their loss.
As an example, a property we short sold, the bank lost over $120,000. They settled with the seller for $25,000 to be repaid over 15 years with zero interest. The seller's monthly payment was only $138.89.
Many lenders take 12-18 months to foreclose upon a property and resell it. This dramatically increases the loss and makes any deficiency judgment potentially bigger. Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at robin.lemmons@kingthompson.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 614-741-2495.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here. http://columbusohshortsaleadvisors.com/
Thinking about a loan modification? Our Columbus loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy. http://columbusohshortsaleadvisors.com/
Thanks for reading this, Robin Lemmons.
Rick & Robin Lemmons is a Real Estate Team at Coldwell Banker King Thompson.
Phone: 614-741-2495
Email: robin.lemmons@kingthompson.com
A Zest For The Best
View My homes for sale at www.rickandrobin.com.
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Important Notice
Rick & Robin Lemmons, Coldwell Banker King Thompson, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorsed by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Robin's personal views and do not reflect the views of Coldwell Banker King Thompson.
This information on How A Columbus Short Sale Can Stop Foreclosure is provided as a courtesy to our viewers to help them make informed decisions.
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