Short Sale transactions can be confusing if you are not sure how to proceed through the steps. Here are some frequently asked questions when it comes to Short Sales.
Q. I’ve missed a few mortgage payments. Am I at risk?
A. Once you have missed 3 payments your home may undergo the foreclosure process, but there are ways for you to prevent this from happening. The foreclosure process varies in all cases and each situation is different. At this point you need to call for immediate help.
Q. How do I know if a short sale is my best option?
A. Each situation and finance program is different for each person. Your lender or bank may have certain requirements and qualifications to begin a short sale. Contact your bank or your Realtor at once to know your options
Q. What should I do once I’m behind on my mortgage payments?
A. Don’t wait, get help early and call me immediately! By actively working to resolve the issue as soon as possible, you greatly increase your chances of avoiding the loss of your home through foreclosure. Even if you have not missed a payment but foresee it on the horizon, contact your lender and explain your financial situation. This act of initial contact, before letters of delinquency arrive, will help your lender understand that you are facing issues that impede your payments, providing your lender an incentive to find a proper “work out” resolution, or to begin modifications to your loan. Sooner you start more options you will have.
Q. What is a “work out” resolution?
A. Commonly, the term “work out” resolution is an agreement where you continue making payments on your past due amount over a period of time. Also a loan modification can help lower your interest rate, or your payments.
Q. If I am already in the foreclosure process do I stay or leave my home?
A. You should contact your attorney to determine the best course of action. Abandoning your property may have severe negative consequences on your qualification for assistance.
Q. How do I know who to trust?
A. Always be wary of potential scams. Any person or so called “investment” company free from DRE regulations offering a solution that sounds overly optimistic may be trying to take advantage of you during your time of financial troubles. Some warning signals of a scummier include anyone who charges a fee before any financial services are completed. The Short Sale process is NO Cost to Seller, to learn more send me an email at deepak@HouseInSoCal.com
Q. Why would my lender rather help me stay in my home than foreclose?
A. There are several reasons your lender may be interested in other options than foreclosure. Most times, the lender will lose substantial financial losses, on average $50,000, from a home foreclosure. Mortgage companies are not interested in owning and selling Orange County homes.
I am not an attorney and cannot give actual legal advice. Please contact a real estate attorney for more information and answers. If you are interested in more details please send me an email at deepak@HouseInSoCal.com