Short Sales
Difference Between A Short Sale & Foreclosure
The Difference Between Foreclosure and Short Sale is a legal procedure in which a lender, normally a mortgage lender obtains a court order stating a termination of a mortgagors equitable right of redemption. A foreclosure is when a financial institution repossesses your home due to a failure to keep up with mortgage re-payments. If this were to happen you lose your property, all your rights to the property are terminated and you are evicted from the property, which is then sold onto someone else.
Many people often feel that they have no alternative to a foreclosure when they have missed mortgage payments when in some circumstances you may be in a position that means you don’t have to suffer the effects of a foreclosure. One of the first aspects that you need to look at when you are facing the prospect of a foreclosure is to decide whether a foreclosure will actually help your financial problems. If your money problems are temporary such as you have lost your job but it’s only a matter of time before you get one again then you should try everything to avoid a foreclosure; however your debt may be so large that a foreclosures is the only way out of it. Evaluate your situation and you may find you can get out of a foreclosure. If you are one of the many people who are worried about the prospect of
foreclosure or maybe you are facing a foreclosure, well have you considered the option of a short sale.
Short Sale
Short Sale In Alaska is when a lender accepts a discount on a mortgage as a way of avoiding possible foreclosure; it is when a lender accepts less than the total amount of money that is due to them for the sale of a property. The process of a short sale is a unique arrangement where the financial institution that is involved and the home owner work together to sell the property before it becomes another foreclosed property.
An example of a short sale is if a homeowner is facing a foreclosure and they have an existing first mortgage of $300,000 then you write an offer to the lender for $260,000, which is then accepted as full payment for the loan. There is one aspect that people are always left thinking about in the case of a short sale, which is why are lenders taking less than what is owned to them? Basically it saves your lender in the long run; this is because the foreclosure process in Michigan is very costly for a lender.
Lenders do not want to become property managers; lenders want to lend money. While the house is left vacant, the pipes may freeze throughout the cold winter months, the house could be vandalized, and usually the home will sell for much less than what it could sell for in the short sale process. Also lenders to not like to have excess inventory and bad loans on their books, meaning if they see an opportunity where they can sell the property without a huge loss they will do it.
If you are facing the prospect of a foreclosure I reccomend you to look into the route of short sale, you never know it could just be the answer you are looking for.
Are you behind or about to be behind on your Mortgage Payments?
In Alaska it is more and more common for homeowner to find himself/herself in a hardship situation when they are no longer able to make their mortgage payments, due to a variable interest rate that has changed, divorce, illness, job loss or a variety of other reasons.The MARK Z Real Estate Team will work with your lender on your behalf to set a price that will get your home sold quickly. This requires your lender to take a discount on what is owed them. Sometimes your lender will take as much as 20% or more less than what is owed.
If you have a FHA mortgage, your lender will send out an appraiser and can accept approximately 82% less than the appraised value.
Why would a lender take less than what is owed to them?
A short sale will save your lender the costly process of getting the home back in Foreclosure.The foreclosure process in Alaska is very costly for a lender. Lenders do not want to become property managers. Lenders want to lend money. While the house is left vacant, the pipes may freeze throughout the cold winter months, the house could be vandalized, and usually the home will sell for much less than what it could sell for in the short sale process.
We are a team of real estate professionals who specialize in working with mortgage companies to provide pre-foreclosure solutions to homeowners who are in this very situation. We work with your lender on your behalf to list and sell your home.
