Alternatives To Foreclosure Can Be A Huge Advantage! (Short sales)

I have worked in short sales and foreclosures for over three years now. Two or three years ago I had to explain what short sales were! Now, almost everyone has heard of short sales as a method of selling real estate that has a larger mortgage on it than it is worth. I educate clients on their options and details of this type of transaction.

I am a Realtor and Investor. I work with people all over the US helping them to find a way out of tough situations with their real estate. Most people I talk to have issues with less income coming in and/or their mortgage payments going up. On top of that most of the time their real estate is worth a lot less than what they owe.

Here are some solutions: Most people start talking with their bank to get a mortgage modification. This can be good, but often the reduction in monthly payment is not enough to make a difference. The banks often deny the modification because of too little income.

Another way of fighting the foreclosure is foreclosure defense. This is handled by a lawyer typically. This can delay a foreclosure for many months to many years!

Most of the time, even with the first two options, it will eventually come down to either a foreclosure or a short sale. Most agree the short sale is much better than a foreclosure. It leaves your credit in much better shape and often dismissed all that may be owed to the bank!

A lot of people are in the ‘standard’ situation as we define it. This usually involves lower income / loss of job, the home payments going up, and the home being worth less than what is owed. I am asked for my opinion on the best method to combat this. Most want to start with a modification of their mortgage in order to keep the home. This can be good, but the result may be payments that are lower but not enough to make a difference.

If these don’t solve the problem, you can move to a short sale. This will allow negotiation with the bank and a sale close to today’s market price. The owner can find a cheaper way of living and a fresh start. The deficiency amount and tax can usually be dismissed! The short sale is much better than a bankruptcy or foreclosure! They can leave the owner with money that still has to be paid over many years and tax liabilities! There are many lawyers that can help.

Looking to find the best deal on short sales, then visit www.americanproperties1.com’to find the best advice on avoiding foreclosure for you.