Thousands of San Diego area homeowners are heading toward financial ruin due to increasing mortgage expense and decreasing real estate value.Their original intent was to either sell or refinance by this time, but because property values have decreased, they are finding that neither one is an option.Most know it´s only a matter of time before the nest egg is gone and the Notice of Default arrives in the mail.
There are options you probably do not know about.If you want to keep the house, the first thing you should do is contact the Homeownership Preservation Foundation (HPF) for counseling and advice.HPF is a non-profit organization which will put you in touch with HUD approved counselors free of charge.The counseling is actually funded by many of the top lenders who want to assist you in avoiding foreclosure.There are two ways to use this service, either call them at (888) 995-HOPE (4673) or visit http://www.995hope.org.If you think you may be heading for problems, contact them as soon as possible as it keeps more options open for you.
If you must sell, or if HPF cannot help you keep your home, there is another option.A ´Short Sale´ may be your best alternative.A short sale is where the lender agrees to accept less than what is owed, in lieu of foreclosing on the property.Because the foreclosure process is so expensive and lengthy, most lenders will agree to forgive all or part of the deficiency through a short sale.
Important points about a short sale:
·The lender will require a ?hardship letter´ explaining why you can no longer pay the mortgage.
· Although a short sale can still have a negative effect on your credit, it is far better than foreclose or bankruptcy.
·You don´t need to be behind in payments to qualify for a short sale.
·A short sale can still be accomplished even if the shortage amount exceeds the amount owed to the subordinate Trust Deed holders.
·In most cases, the lender will agree not to seek a deficiency judgment when the short sale is accomplished.
·As of December 2007, the amount forgiven is no longer considered taxable income.Retroactive to January 2007.
A short sale is a very time consuming and difficult process, the success of which depends a lot on how well the agent you choose can accomplish the task.Dean has undergone extensive training by an actual loss mitigator for a major lender and has the experience and tenacity necessary in order to effect a successful short sale.
