If you choose to do nothing when effort is required, expect gravity to pull you under. ~ Rhonda Duffy
When you have a predicament that has come upon you either by your choice or not, you must take action to get to the best possible outcome as quickly as possible.
Many homeowners are finding themselves in a predicament with their mortgage liability. They have suffered hardships ranging from job loss, divorce, death and even being severely upside down in the property's value. With the rise of the hardships in place versus the hardships disappearing, home sellers must take action as quickly as possible to have options that offer them recovery as quickly as possible.
There are solutions available that dissolve the debt owed to the mortgage holder. The first of the solutions is a short sale that removes the debt owed with a satisfaction of mortgage with no money needed at closing from the seller. After finding a buyer for the home, the homeowner then proves to the lender that they have a hardship. This proof shows that the homeowner deserves the reprieve from the debt to the lender under the lender's guidelines of a short sale and the homeowner is given a satisfaction of the mortgage with no debt owed.
In some cases the lender's specific requirement require that the homeowner pay either a small portion of the debt at closing or the debt is paid off with a promissory note. The amount of debt asked for is significantly less than the amount owed.
In worse case scenarios, the lender forecloses on the home and then pursues the debt owed with vigor and the homeowner is severely penalized on their credit and sometimes on their job if the employer is seeking a worker with good credit. Foreclosure is a horrible predicament and often sends the homeowner into a financial crisis that can only be recovered after years of further hardship.
To do a short sale you need to act quickly to find a buyer. The best place to seek a buyer is by using both the MLS activated by a real estate agent and the for sale by owner market where many investment minded individuals search for great deals. Once your home is on the market, your agent will start communicating with your lender. Most lenders are relieved that you are seeking a solution to your problem rather than sloughing off the responsibility of your debt. Next, getting together your package of proof is important. The package that will be sent to your lender needs to be meticulous and well thought out. Your agent should be an expert in short sales with both training and experience. Without experience, your agent will not be able to provide the best package to your lender.
For more information on short sales go to www.ssrules.com.
Written by: Rhonda Duffy
Rhonda Duffy is an Elite Certified Short Sale Specialist and is the ONLY Elite CDRS designated real estate broker in Georgia.
Presented by:
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder of oXYGen Financial, Inc
Ted Jenkin is one of the foremost knowledgeable professionals in giving financial advice and Smart Money Moves to the X and Y Generation.
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