Avoid Foreclosure!!! Your bank will consider a “Short Sale” in most cases and allow you to avoid a Foreclosure Auction – You just need to ask them. It’s not too Late! What is a short sale? A short sale is where the bank agrees to take less money than you owe them. For instance, you owe $250,000 on your mortgage, but your home is now worth $230,000. After the bank figures in the cost of sale, the bank might get $210,000. If the bank accepts the offer, you sell and walk away from your mortgage and owe nothing!! What’s the downside of a short sale? A short sale typically will reduce your credit rating 80 to 120 points. This will affect your ability to get other loans until your credit works it’s way back up. By the way a foreclosure reduces your credit rating 300-400 points. The rule of thumb which I have heard is a Short Sale affects your credit for 2 years. A Foreclosure or Deed in Lieu of Foreclosure affects your credit for 5 years and a Bankruptcy affects your credit for 7 years. These are just rules of Thumb, but a short Sale is the preferred way to get out from under a home. Now here’s the good part, because the market is down, There are a lot of unbelievable deals out there, so once you get rid of the mortgage you are having trouble with, you can rent or possibly buy a great deal below market. We can expect the real estate market to continue to decline for the next six months, by then we should be near a bottom in the market. Any home purchased in the next year will be purchased at “the bottom of the Market” and should have 5 to 6 years of spectacular growth. I am a real estate broker and investor. Call if you have any questions or want to meet with me for a free confidential consultation. Sincerely, Jeff Hendrick Broker/Investor Hendrick Realty 603-321-0731 Better Business Bureau – No Complaints – “Perfect Record” |