A little-known alternative, once more commonly used in the real estate downturn of the early '90s, is the "short sale," which works like this: A homeowner falls behind on his or her mortgage payments, usually due to a job loss, rising debt payments, or both. The homes mortgage exceeds its value due to the downturn of the market. Our goal is to work out a deal with your lender to sell the home for whatever the market will bear! AND, if the amount of the sale is for less than the amount owed on the mortgage, we negotiate with the lender to discharge the remaining debt.
In cases of short sales (as in foreclosures), a delinquent mortgage will negatively affect your credit rating, but with a short sale, you can avoid having a "debt discharged due to foreclosure" on your credit reports. Mortgage and credit experts say that, after bankruptcy, having a foreclosure on your credit report is the worst result and will reduce your credit score by over 250 points. You could also have to wait up to several years to qualify for a mortgage at a reasonable rate.
Short sales show up on a credit report as a "pre-foreclosure in redemption" status and are far less damaging to you credit scores. After the sale, the mortgage may show up as "discharged," or "settled." People who successfully complete a short sale may also maintain their creditworthiness for future home purchases.
If you are currently behind on your mortgage payment or predict that you will soon be unable to continue making your mortgage payments you're not alone: you do have an option. Let our TEAM OF ATTORNEYS fight for you!! Call now for a free consultation!!
We will assist you to identify and implement the best possible solution, helping you to avoid foreclosure. Many distressed homeowners simply give up and give in to the foreclosure process, often without being fully aware of the option available to them. CALL NOW!!
