Short Sale Foreclosure - How To Save Your Home
If you are needing to save your home, our “short sale foreclosure” method could be the ticket. If you are in an area where dropping home values are prevalent, then definitely keep reading about our short sale foreclosure way to save your home.
Here’s how it works to save your home from foreclosure…
One option a real estate agent or investor may bring to you is asking the foreclosing lender for a “short sale”. This involves asking the foreclosing lender to accept less than they are owed, call the lesser amount payment in full, and thereby avoiding a foreclosure. You’ll have a greater chance for success if home values in your area are dropping. The bank will look at your offer since the alternative is to put a declining value asset on the books. Not a wise move for the bank.
Never work a short sale with an investor. His greed will kill the deal. Keep the real estate agent in check as well. Some will try to get a ridiculous 10% commission…don’t let their greed kill the deal either.
Agents may help you with this process, but in all actuality the bulk of the negotiating and paperwork will be up to you to complete. The agent will help you establish a quick sale value which the lender will eventually want to see. It’s called a Broker Price Opinion or BPO.
If you have a second mortgage, talk to the second mortgage lender first. The 2nd mortgage company gets wiped out in a foreclosure, so they are really motivated to work something out.
If you don’t have a second mortgage you’re forced to work with the current 1st mortgage lender. Call and get the short sale foreclosure package from them, sit down with an attorney, and have him explain what the lender’s short sale foreclosure terms are before proceeding. If the terms are acceptable, return the package getting enough of a mortgage reduction to allow you to sell the house paying them the agreed upon amount as payment in full.
Get all the documentation and hang on to it. You may need to prove you’ve paid the mortgage in full down the road. Many subprime lenders you may be dealing with are motivated or, at least they should be, since they have a lot of loans in foreclosure right now.
Tell the lender in the short sale foreclosure package about your income drastically dropping, the recent job loses, etc. (whatever befell you that triggered falling behind) and if they don’t agree to a reduced payoff, you’ll simply be forced into foreclosure. That will motivate them to work with you. But it must also be true.
Lenders are willing to work with you on a short sale and other loss mitigation techniques. You just need to know how. Don’t give anyone money or sign your house away to an “investor”. You can stop foreclosure yourself. We recommend our book in which we walk you through how to negotiate with your lender to stop your own foreclosure called Stop Your Foreclosure Now!™
Short sale foreclosure is covered extensively so get this book today ….it will teach you exactly how to stop foreclosure the right way.
Author: Rob K. Blake
Published November 28, 2007
Modified March 20, 2008
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Yes…of course you’re right. Terri and I are currently working on a manual and software to help investor take advantage of short sales. Real estate investing has been a farce at the ridiculous price levels for the last few years.
It still may be too early since values are dropping and we are not anywhere close to the bottom in prices. I contend we need to see a 25% drop to get back to “true” values.
Of course investors only really make money buying “below” true value….so a short sale is the only possible way to get 30-40% discounted sales prices.
Check back on our Products Page for any new programs. Thanks for stopping by…
RKB
December 31st, 2007 at 11:21 amShort sales are looking even better right now. I noticed the inventory is raising locally. Might be a good thing for investors.
December 31st, 2007 at 7:06 amSam,
Any sale of the property if done in time, stops the foreclosure by paying of the foreclosing lender with the proceeds of the sale.
No more loan, no more foreclosure.
A “short sale” is a method to use when the sale of the property does not yield enough proceeds to completely payoff the mortgage…the “sale” comes up “short”, so to speak.
This means the foreclosing lender must agree to take a lesser amount than owned and call the debt “paid in full” ceasing the foreclosure in the process.
July 5th, 2007 at 10:54 amHope that clarifies things for you.
RKB
How much more can a short sale really stop foreclosure?
I guess it’s as simple as the fact that short sale stops foreclosure.
July 5th, 2007 at 10:45 amLeave a Comment