Upside down? Underwater? Short Sale & Other Options
If you owe more on your home loan than you could sell your home for today, then you're "upside down" or "underwater." What are your options?
Explore Alternatives
Consider whether or not you really need to sell your home. Can you wait a few years to sell? Could you move in with friends or family & rent out your home? The ideal time to sell your home is not while you're "upside down," so explore your alternatives.
Loan Modification
First, call your mortgage company and try to get a loan modification done. A loan modification will adjust your rate lower & make your payments lower.
Short Sale
If a loan modification isn't possible or isn't enough to keep you out of danger, short sale is always an option. A short sale is when your lender or mortgage company agrees to accept less than the amount you owe on your home. In some cases, the lender forgives the difference. In other cases, you must make arrangements to settle the remainder of what you owe.
Real estate professionals advise that you should contact a qualified agent that has experience working with sellers that are in upside down loans. Not all real estate professionals have experience with short sale situations. This is imperative, so make sure to ask when interviewing an agent to market your home.
Bankruptcy & Foreclosure
Short sale is a much better option than foreclosure & bankruptcy. A short sale can reduce your credit score by about 120 points & it will be 2 years until you are able to qualify for another loan. Foreclosure will lead to a 250-point to 300-point drop in your credit score & then it will be 7-12 years until you are able to qualify for another loan. Bankruptcy will lead to a 350-point drop in your credit score & it will be 12 years until you are able to qualify for another loan.
Get Help Before It's Too Late
"By all means, try to get out. That's the key," says one Sea Coast Realty sales associate. "I've seen so many houses that were short sales & now they're foreclosed on. It's because they're not getting what they need to get done. It's all about time."
For more information, please visit www.seacoastrealty.com or find us on Facebook.
Explore Alternatives
Consider whether or not you really need to sell your home. Can you wait a few years to sell? Could you move in with friends or family & rent out your home? The ideal time to sell your home is not while you're "upside down," so explore your alternatives.
Loan Modification
First, call your mortgage company and try to get a loan modification done. A loan modification will adjust your rate lower & make your payments lower.
Short Sale
If a loan modification isn't possible or isn't enough to keep you out of danger, short sale is always an option. A short sale is when your lender or mortgage company agrees to accept less than the amount you owe on your home. In some cases, the lender forgives the difference. In other cases, you must make arrangements to settle the remainder of what you owe.
Real estate professionals advise that you should contact a qualified agent that has experience working with sellers that are in upside down loans. Not all real estate professionals have experience with short sale situations. This is imperative, so make sure to ask when interviewing an agent to market your home.
Bankruptcy & Foreclosure
Short sale is a much better option than foreclosure & bankruptcy. A short sale can reduce your credit score by about 120 points & it will be 2 years until you are able to qualify for another loan. Foreclosure will lead to a 250-point to 300-point drop in your credit score & then it will be 7-12 years until you are able to qualify for another loan. Bankruptcy will lead to a 350-point drop in your credit score & it will be 12 years until you are able to qualify for another loan.
Get Help Before It's Too Late
"By all means, try to get out. That's the key," says one Sea Coast Realty sales associate. "I've seen so many houses that were short sales & now they're foreclosed on. It's because they're not getting what they need to get done. It's all about time."
For more information, please visit www.seacoastrealty.com or find us on Facebook.
Labels: bankruptcy, coldwell banker sea coast realty, credit score, FICO, foreclosure, loan modification, mortgage, realtor, sea coast realty, short sale, underwater, upside down
posted by Sea Coast Ashley at
12:17 PM
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