subject: When to Short Sale to Avoid Foreclosure [print this page] When to Short Sale to Avoid Foreclosure When to Short Sale to Avoid Foreclosure
Although the prospect of a short sale to avoid foreclosure seems unpleasant, mortgage foreclosure on your home can be one of the most challenging events of your life. The likelihood of simultaneously losing life savings and your home, is something many of us will find extrmely difficult to deal with.
Even if you are reluctant to face up to reality, leaving what is happening until there are no more options is just futile. The sooner you deal with the unpleasant truth that you may be at risk of foreclosure, the more likely your odds of mitigating your problems. By actively taking responsibility as soon as possible, you'll be able to achieve the best outcome possible.
Foreclosure can be avoided in several different ways. Whichever way you look at it, the ways to avoid a foreclosure generally involve finding a way to attain affordable monthly mortgage loan repayments, but just by refinancing or increasing your income or modifying the loan.
The steps you should take to determine which strategy is best for you, are to determine your budget, and examine the various government programs, and refinancing / consolidation / mortgage modification options available.
If it turns out that you are really out of options, then it's far better to acknowledge this in advance and discuss a short sale to avoid foreclosure with your lender, rather than to avoid the bank.
You see, if you don't do something promptly to sell your home whilst you still can, then the following will become inevitable:
1. Mortgage foreclosure will be started by the lender.
2. The lender will hold an foreclosure auction sale of your home.
3. You won't receive the highest price from the pre-foreclosure sale. There are a lot of hard nosed people bargain hunting and preying on people in your circumstances.
4. You will have foreclosure on your credit record, which will cause severe damage in the long term.
5. You will be stuck renting accommodation for the foreseeable future as your damaged credit record means you won't be able to enter into a purchase agreement for any real estate.
6. As a result of ignoring the foreclosure process until the last minute it isn't entirely unreasonable to conclude that you have no spare cash now to give your breathing room until you can get back on your feet.
7. This will be traumatic in the extreme. The damage that stress like this can do is often worse than the actual financial knock.
So you really need to look at a short sale to prevent this from happening.
Do you qualify for a short sale? Find out at Real Estate Short Sale.
