A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy have also improved the chances of getting a short sale approved.
For homeowners to qualify for a short sale, they must fall into all of the following circumstances:
- Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall- In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency-The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
If you have questions, contact Maria Owczarzak at (815)715-2015
YOUR FIRST STEPS TO AVOID FORECLOSURE
In today's market, chances are you or someone you know is having trouble making the mortgage payment each month. Facing the possibility of foreclosure is an overwhelming reality for homeowners already feeling the pressure of an upside down mortgage.
If this is your situation, understand you are not alone. Millions of homeowners nationwide are in the same circumstances.
Many do not realize that foreclosure is a process, and there is time to make decisions that may result in a better outcome. Having the motivation to take action, and finding a professional who can work with you toward a solution,, can ease this frustration.
SO WHERE SHOULD YOU START?
First you need to know your situation. Even if a bank has started procedures to repossess your home, it doesn't mean that you're out of time or options. The foreclosure process is generally lengthy, so there is time to analyze your next steps. Your first steps should include:
- Take action and find out the answers to many of your questions.
- Contact Maria Owczarzak, she is a very educated foreclosure expert.
- Organize Your Personal Documents and Information. Prepare by gathering your personal information in an organized fashion. No matter which option you choose, the process can be expedited significantly if these materials are assembled before hand:
- Checking Account statements
- Recent Mortgage Statements
- Savings Account statements
- Your last two Paycheck stubs
- Your past two tax returns
- Prepare a letter of hardship
- Contact your lender as soon as possible to discuss the appropriate solutions to your circumstances. Lenders want to avoid the foreclosure process just as much as homeowners. They are not in the real estate business, do not wish to take ownership of a home, and do not want a house to sit idle on the market. Recently, some have even instituted further options to help homeowners avoid foreclosure.