Working with your lender to stay out of foreclosure can be tricky and sometimes scary. RE Market Solutions (REMS) is here to help! Not all situations will require you to go to foreclosure. Here are some things to remember when you get behind on your payments and need help.
Don’t be afraid to call your lender…. They won’t bite… but do take good notes
There are often multiple alternatives to foreclosure including a loan modification, forbearance, and short sale
Sometimes a bankruptcy may be better suited to your financial needs
Qualifying for a short sale is not as hard as some would think
Lenders still offer relocation assistance (but each lender and investor are different)
There are some State programs that you may be able to apply for
Be sure to ask lots of questions
Who represents you in a short sale matters. They are not for the faint of heart and you need someone like REMS to fight for you
Don’t hesitate to call or email us with questions that you may have. Click on the contact link below and we will be happy to go over your situation with you so that you can determine what is your best course of action.
Am I eligible for a short sale?
A bank will review a short sale request when there is 1) a hardship and 2) there is not enough equity in the home to be able to pay off the mortgage
The following are a few examples of a hardship:
- Loss of Job
- Reduction in income
- Job relocation
- Onset of medical conditions
- Bankruptcy filing – usually Chapter 7 or 13
Benefits for Short Sale
While there may be other options for you – loan modification, foreclosure, etc. At times a Short Sale is the best long-term choice for you and your family. A short sale process can take several months. This would give you the ability to stay in the home until escrow closes, rather than having to move out immediately due to a foreclosure. You may also be eligible for a relocation incentive – up to $10k. This money can open up a lot of options for someone who has already lost their income and is unable to save money for a security deposit on a new apartment. You could be eligible, under certain loan programs, to purchase another home in 2 years rather than having to wait 5-7 years if you let your home go to foreclosure. In a short sale, many lenders will allow you to continue making your mortgage payments, which can reduce the impact on your credit score. A foreclosure will significantly impact your credit for 7 years or more. For others, just knowing that you were able to “sell” your home and not go through a dreaded “foreclosure” can allow you to retain a sense of dignity.
How does a short sale work?
The process for this, unfortunately, is anything but ‘short’. The average short sale can take anywhere from 60-120 days, as long as all the paperwork is completed and returned quickly, and the buyer is ready and able to purchase the home ‘as-is’. We have most of the lender-specific paper work in-office, and we know what the lender will be requesting. Therefore, you will not need to wait several weeks for the lender to let you know what they need to review for the short sale.