Choosing Viable Alternatives To A Short Sale

Choosing Viable Alternatives To A Short Sale

It is a painful and stressful experience to have to let go of your home because you do not have the means to settle your mortgage. But, it is a reality that is faced by many Americans today. Reports even show that about 50% of homes in the US are underwater or are worth less than what people owe on their mortgages. These homes will most likely be subject to foreclosure proceedings. Banks are over the top with these kinds of properties. For both sides of the equation, there is nothing desirable at all about this scenario. People are actually just giving their homes up by sending in the keys even before they are due for foreclosure. They simply do not see any reason why they should even be paying more when their homes are not worth much these days. This is a separate matter altogether in as far as ethical and moral considerations are concerned. Much argument is being thrown at this particular recourse to the growing interest rates and falling real property values. For people who are already at default on their mortgages, the only other option to losing their homes to foreclosure proceedings is a short sale. This means that both the borrower and the lender agree to sell the property for an amount less than what the borrower owes. There are, however, down sides to a short sale. For these reasons, people are looking for viable alternatives to a short sale.

Contrary to popular belief, a short sale does not necessarily free you of any obligation towards your debt. As you are selling your property for less than what you owe your lender, there definitely will be an amount that will be left unsettled. Depending on your agreement with your bank, you might still be held liable for the balance left after the short sale. In other cases, the short sale might not happen before the foreclosure sale date falls due or the bank might not even agree to a short sale. One of the viable alternatives to a short sale is a walk-away program where you let another company take over your property and negotiate with your bank for the purchase of your promissory note. By doing this, you are able to let go of your property without the fuss and the stigma that is associated with foreclosure proceedings.

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