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). See this schedule showing the opportunity cost of money lost by waiting.

  • 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. For real estate advice,
Bob & Mary Caldwell have been certified by the National Association of Realtors as a
  "Short Sales and Foreclosure Resource".
 

 Why a Short Sale is probably 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 lender's 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?

  • Has an "event" occurred in your life that would make continued living in your home very difficult?


         Will The Mortgage Debt Forgiven in a Short Sale be Taxable?

    One of the main concerns most people doing a short sale have is the issue of the taxability of the debt forgiven. Click here to see the official IRS publication concisely explaining "The Mortgage Forgiveness Act and Debt Cancellation.


    Rules For Buying a Home After Doing a Short Sale or Foreclosure

  • Under certain circumstances you may be able to obtain a new FHA or VA loan immediately after doing a short sale.  The maximum FHA loan amount in Maricopa County is currently $271,050.

  • The wait time to qualify for FHA home financing is 3 years after a short sale or a foreclosure.

  • See the guidelines for qualifying for a new loan