|
Are you facing a financial
hardship?
Because of the
extended recession, many homeowners are suffering from one
or more
hardships resulting from a variety of reasons
including health issues, job loss or reduction
in income, marital or family status change, relocation, larger mortgage
payments resulting
from an
interest rate adjustment or other hardship. At the same time, they are also having
to deal with the fact
their home is worth less than the amount they owe on their
mortgage.
Homeowners, what
are your options?
-
DO
NOTHING...stay in the home until the value of the home
matches or exceeds the amount of debt against the
property (some believe doing so may take years).
-
Contact the
lender to see if you qualify for a loan modification
(your housing expense must be greater than 31% of your
gross monthly income).
-
List your home
for sale as a Short Sale.
-
Give the lender
a "deed-in-lieu-of-foreclosure".
-
Stop making the
payments and let the home go into foreclosure.
-
Depending on the
owner's overall financial situation, bankruptcy might be
considered.
NOTE: The information
provided is not intended as legal, accounting
or investment advice. You should consult with an attorney,
CPA, loan officer
or other professional for advice on Short Sales and
Foreclosures. (Bob & Mary Caldwell
have been certified by the National Association of Realtors as a
"Short Sales and Foreclosure Resource").
Why
a Short Sale may be your best option
Considering the
options available to them, many homeowners have
chosen to list their home
as a Short Sale. The majority of
the major U.S. mortgage lenders,
Bank of America, Chase Bank, CitiMortgage, GMAC, Wells
Fargo, Ocwen (and many
others), are now doing Short Sales in the normal course of
business having setup departments strictly for that purpose.
Most lenders will forgive the balance remaining after the
sale. The negative impact on your
credit score is less with a Short Sale than it would be with
a foreclosure on your record.
NOTE: All the
costs of Short Selling your home, including the commission,
will come out of the lenders proceeds at closing. You will
pay no costs!
Do
you qualify for a Short Sale?
-
Are you
suffering with a hardship with little relieve in sight?
-
Have you been
denied a loan modification?
-
Do you want to
minimize the damage to your credit?
-
Has your monthly
mortgage payment adjusted beyond your ability to pay?
-
Are you facing
foreclosure and about to lose your home?
Rules For Buying a Home After Doing a Short Sale
or Foreclosure
-
You do not have to be late
with your mortgage payment in order to do a short
sale!
-
If you are current with your
existing mortgage and have made no payments late on
any indebtedness including your mortgage, credit
cards, car payments, etc,, you can obtain a
new
FHA or VA loan immediately after
doing a short sale.
If you were 30 days late, the waiting period is 2
years. If more than 30 days late, the waiting period
is 3 years. The maximum FHA loan amount in
both Maricopa and Pinal counties is currently
$346,250.
-
After a foreclosure, the wait
time is 3 years if applying for an FHA loan and 5
years for conventional financing.
|
%20copy.jpg)