Late On Your Mortgage Payment- Avoid Foreclosure, Benefit From Short Sale

If you are one of those home buyers who benefitted from the housing bubble several years ago, then you are probably in a financially difficult situation. The real estate market all over the country including Prince George County, Charles County, Washington DC and New York dipped down low when the housing bubble was busted in 2006 which resulted from the collapse of the US mortgage industry. Due to this, the property prices declined significantly.
To recover from the loss, many financial institutions have increased interest rates on mortgage loans. The lenders also want the mortgage payments to be on time and if the borrower of the loan delays, the borrower is charged with a penalty.
If you are in a financial crisis, late on your mortgage payments and living in a home in which the market value has decreased dramatically lower than your mortgage balance, you are probably worried and thinking of ways to avoid foreclosure.
In times like these, the best way is to get assistance from a professional real estate company who can guide you on how to avoid foreclosure and pursue a short sale. A real estate company professional can help you short sale your home at a good price. 

Why Avoid Foreclosure?

It is extremely important to avoid foreclosure because a foreclosure negatively impacts your credit score. It reduces to credit score significantly and it takes about 10 to 12 years to re-establish your credit rating. With a bad credit score, you can’t borrow unsecured loans. You are only allowed to get secured loans which have a high interest rate and can only be acquired if you pledge collateral against it.  The collateral has to be a valuable possession like a car or real estate.
Therefore, it’s better to avoid foreclosure and benefit from short sale.

What is a Short Sale?

Short sale is the perfect way to repay your mortgage loan in liquidity crisis without damaging your credit score. A short sale is a sale of a property like a home, building, condo or an apartment. This is a situation in which your lender (the financial institution) agrees to receive a discounted payoff on the mortgage loan. The remaining amount is waived for good.
However, the lender has the right to reject the offer in case the price you sell your home to pay off the loan is not even half the actual price of the property. This is what the real estate company can help you with.
The real estate company can assist you with finding the perfect buyer who is willing to offer a good price for the house. Also, the real estate company can also help negotiate short sale terms and conditions with the lender and convince the lender to approve the short sale application.

Slight Decrease in Credit Score

In a short sale, the borrower gets a redemption status when the lender reports the credit reporting agencies about the situation. The redemption status prevents the credit score of the borrower from getting damaged significantly unlike in the case of a foreclosure. In the short sale, your credit score falls only below 50 points while in a foreclosure it drops dramatically.
Debt Waive

*Only Approved Lenders Can Send Mailed Payments Please call our office for more information
After 30 days of completion of an appraisal, any outstanding accounts will be considered delinquent