A Short Sale: One Alternative to Foreclosure

Are you having trouble making house payments due to a high interest loan or an unexpected financial hardship? Maybe you have lost a job, suffered a cut in pay, have a medical condition, or maybe you are going through a divorce. Whatever the reason, if you have tried to sell your house without success and are considering escaping the burden by abandoning the residence and filing bankruptcy, much better options exist. If more is owed on the home than it is worth on the current market, talk to the lender about doing a short sale. A short sale is one alternative to foreclosure, and a short sale is a sensible solution that will not cause long-term credit damage when you can no longer make the payments.

Talking to the Lender

As much as you probably dread talking to the lender about an inability to pay the mortgage payments, you need to pick up the phone and make that call as soon as possible. Running away will not solve the problem, and waiting for the inevitable is not the answer. Contrary to popular belief, mortgage lenders do not want borrowers to simply walk away, and alternatives such as a short sale might be the answer, depending on the market value of the home in comparison to the amount owed. Although the lender is not a friend, they want to help borrowers workout solutions since doing so will eliminate the time and expense of foreclosures.

Although you may have received calls from demanding service reps when payments were late, you will probably be surprised by the helpfulness of those in the workout department when considering a short sale or another viable solution. Workout negotiators are trained to be tactful, understanding, and compassionate, and they will help find the solution needed to avoid foreclosure. Willingly provide the information required, be completely honest regarding the situation, and a solution will be provided that is in the best interest of all concerned. A short sale could be the answer to your problems.

How Does a Short Sale Work?