Are you having mortgage problems?
You may have heard that a short sale could be the answer to your difficulty. In real estate, a short sale is a sale of a property where the proceeds of the sale are less than the balance owed on the mortgage covering the property.
There are many reasons why a homeowner would choose to short sale their Long Island NY home.
Some may have lost their jobs and can no longer afford their monthly payments. Others may be losing their savings as it gets depleted through loss of equity in their home.
A short sale may be right for some people, but is it the best option for you?
Before you make any decisions, discuss your budget first with your family. If you are currently unemployed or have been laid off from your work, what are your available job options? Will you be able to get a job or start a business where you will be able to keep making your mortgage payments or where you can catch up if you are late?
How far behind are you on your mortgage payments? Have you tried applying for a loan modification with your lender?
If you do a short sale on your Long Island NY home, where are you going to move?
Some homeowners who were considering doing a short sale discovered that paying rent to a landlord will cost them more than trying to figure out a way to keep their home. In such cases, it is not in the homeowner’s best interest to sell their home as short sales.
In order to short sell your home, you must also meet all of the following criteria:
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You must have a hardship. A qualified hardship can include many things, such as:
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Loss of employment or reduced hours
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Major illness or medical expenses
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Loss of home equity and inability to refinance
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Divorce
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Increased bills
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Higher living expenses
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Investment Loss
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Changing loan terms or loan payment increase
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Concerning loan terms/High-interest rate
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Inability to save for retirement
Keep in mind that lenders will not consider a short sale unless you can prove to them that you have a hardship that prevents you from meeting your monthly mortgage obligation
2. You must owe more on the house than its current market value. This situation defines the short sale. For example, if you took out a $300,000 mortgage and the appraised value of your home is $250,000, then the property is considered “under water”.
3. You must be insolvent. In order to qualify for a short sale, you must not have the means to pay down your mortgage. The lender will want proof that you have insufficient resources, such as savings, to pay down the loan and you can no longer meet your financial obligations with your lender as debts become due.
The process involved in a short sale can be very demanding. You will need an agent who is an expert in handling short sale processes and negotiations.
Let me assist you!
Call me, Rene Perrin, at 516-802-3785 for a confidential phone interview about your situation. We will go over your options. I will walk you through the process and give you all the information you need
