Ask yourself three questions:
Are you facing a financial hardship that you know will decrease your income?
- Are you getting behind on your mortgage and you're not sure if you can catch up?
- Or do you just need to sell quickly but your home is worth less now than when you bought it?
If you live in the Boise Idaho area (Southwestern Idaho) and are facing any of the situations above and you think a short sale might be your best option, then read on. If you're still not sure and just want more info, then click here to request a free copy of "The 9 Alternatives When Facing Foreclosure."
Click on any of the FAQs below to read the answer.
Answers:
We haven't been able to make our house payment for a while. Is foreclosure our only option?
Absolutely not. The truth is, the bank really doesn't want your home back! You may not have to lose it. Know your options before you make a decision. Let us review each of these options with you.
Option #1 – Work with your current lender
a. Forbearance - A situation where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan.
b. Loan Modification - With a loan "modification" you take the mortgage you now have and change the interest rate and payment requirements.
Option #2 – Work with a new lender
a. Refinance
b. Junior Mortgage Line of Credit* (HELOC)
*Use caution when acquiring a new loan. Please talk to us about when this may be appropriate and not perpetuate a negative situation.
Option #3 – Bankruptcy
Bankruptcy should be a last option and a professional opinion should be obtained before moving forward in this decision.
Option #4 – List the home to sell
a. Pay off all loans attached to the home
b. List your property as a short sale. This occurs when a lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed
Option #5 – Give up and let it go
a. Deed in lieu of foreclosure - A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.
b. Auction overbid* (Be cautious of investors approaching you to convince you to let it go to auction with potential false promises of an auction overbid.)
*Be aware that auction collusion is not uncommon between buyers. Talk to us about the consequences this can present for you as a seller.
If I am listing my home as a short sale, does that mean it is not heavily marketed?
Short sales are usually listed to sell at lower-than-average prices making them an excellent option for real estate investors. We know sellers are eager to expose their short sales to serious buyers, and we know investors and buyers are anxious to have access to search tools that will allow them to browse these li
