Dont Lose Your House To Foreclosure!

If you are like many homeowners you might be having a hard time making your mortgage payment. If you have applied for a HAMP loan modification and have been denied, you still have options other than foreclosure. In this article we will examine the advantages of a short sale.

Today's housing market is still in startling disarray. The effort on behalf of the lenders is shown by their eagerness to work with homeowners home owners who request a short sale. A short sale is when the mortgage holder agrees to a discounted payoff of the mortgage balance thereby limiting the loss that would occur with a foreclosure.

Many lenders such as Bank of America and Wells Fargo have developed specialized programs to make the short sale process as easy as possible.

A short sale is clearly better than having a foreclosure on your credit report. When applying for a loan in the future, having a short sale (as opposed to a foreclosure) shows that you were not irresponsible with the loan and the property. In as little as two years you can buy a home again and obtain a mortgage.

If you haven't yet found a new place to live, a short sale allows you to stay in your home without making any mortgage payments until the property goes into escrow. In addition, once you have an approved short sale, the lender will usually stop or postpone all foreclosure proceedings; With short sales, the investor/lender will make more money than with a foreclosure sale.

Even if you not in danger of foreclosure, but, are seriously underwater (you owe much more than your home is now worth) your lender may consider a short sale as the best solution for both you and the lender. If you stop paying your mortgage and just walk away, the mortgage holder has a potential huge loss and you have shot yourself in the foot about your credit rating. When compared to a foreclosure, selling the home to a buyer is better for both you and the bank.

If you are looking for short sale advice, VA HLC is providing free short sale counseling. There are many benefits when you have a government loan buyer purchase your short sale. You as a seller usually will not have pay anything out of pocket. Also, when you select an offer with a government mortgage, you will get more time to stay in the property.

If you are a homeowner, you should carefully consider each option you have. More importantly you should consider the impact each will have on your future.


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Written by Philip D Georgiades on behalf of VA Home Loan Centers.
If you are currently a home owner and a re having financial trouble, you may qualify for government assistance. Options include short sale, free loan modification assistance, and FHA or VA refinance loans (for those who qualify). Click here for VA HLC home loan info.