Many who are missing their mortgage
payments due to extenuating circumstances
do not realize that their lender does not want
to foreclose. Foreclosure is not an event, but
a process which takes approximately 211
days in California. This lengthy process is
likely to cost the lender as much as $60,000.
in addition to monies lost when the home is
sold for less than is owed to the lender.
During the process, the homeowner receives
a Notice of Default, which is made a public
record. In most cases, a series of prerecorded
collection calls and letters to the
homeowner will follow.
As we see more and more homeowners
begin to default on their mortgages, many
will be seeking alternatives to Foreclosure.
(The homeowner may get cards and letters
from companies offering to re-finance his or
her home. However, in order to successfully
re-finance, it requires that a home appraise at
a price that shows some equity. In an
adjusting or declining market, it is
uncommon for a seller-particularly those
who are in default on their mortgage
payments to be able to show enough equity
to refinance.)
When mortgage debt exceeds a home’s
value, one option is a Short Sale. Ashort
sale is when the lender agrees to accept less
for the property than is actually owed on a
note. It is a process that involves a large
volume of paperwork and requires good
negotiating skills for best results. It is a path
best maneuvered by a trained professional
who will negotiate with your lender on your
behalf.
Ashort sale will help a borrower to avoid
foreclosure, avoid bankruptcy, protect their
credit and be free of many of the financial
and emotional burdens that go along with
the foreclosure process!
There is no downside to doing a short sale
over a foreclosure. Alarge percentage of the
time, short sale is the homeowner’s best
option if unable to continue making
payments.
The best news for the homeowner is that in a
short sale, the lender will cover all closing
costs including Realtor commissions.
Lanny Danenberg of Keller Williams Realty
is a full-time Realtor. In addition to
handling a variety of standard real estate
transactions for buyers and sellers, she is a
professionally trained Short Sale specialist.
Visit her on the web at
www.DanenbergProperties.com for more