Maybe you have just lost your job or your mortgage has been reset to a rate that is now unaffordable or maybe you have had a major financial setback. Whatever the reason, you need to sell your house and sell it quickly. Unfortunately, it is now worth less than what you owe on it. There is no need to panic because foreclosure is not the only solution. There is one final throw of the dice called a short sale in the Longmont CO real estate market that is available and there is no harm in trying it out.
Before you decide on a short sale, make sure that you have exhausted all your other options first. Talk to your lender about a revised repayment schedule or a loan modification. These will give you the opportunity of staying on in your house while providing you a breathing space to reorganize your financial affairs. If you have been paying for private mortgage insurance (PMI) cover, talk to the insurer as well. If the insurer feels that there is a chance that the mortgage may be repaid, they may provide funds to the lender to cover the shortfall. Of course, you would have to repay the insurer in due course but at least you would what some breathing space.
If none of this works, you are back to the ultimate option of a short sale. In a short sale, a homeowner in financial distress sells the house for an amount which is less than what is owed on it. The sale is to a third party and all the sale proceeds go to the lender. The lender may choose to forgive the balance that is due (in some states, this is mandatory for a short sale to be legal). The lender also has the option of obtaining a deficiency judgment requiring the borrower to repay all or some of the shortfall to the lender.
At this point, what you need to realize is that you have to convince your lender that you are a prime candidate for a short sale and that it is in his interest to forgive the deficiency. He is not legally obliged either to consent to a short sale or to give you any form of advantage. Also, if you are not yet in default, he is not likely to work with you. You should have a good reason for your financial predicament and this should not date back to the time when you took the loan. You are likely to get scant sympathy from the lender if he feels that you misled him at the time when the loan was approved. Make sure that you have all the documents you require to substantiate your case.
At this stage, you would be well advised to get an experienced real estate agent involved. Make sure that the agent has plenty of short sale experience and get him to sit in on all the meetings. To be sure, he is going to be expensive but you could be in for a worse financial trouble without expert guidance on your side. Let him advice you on what is the best method to arrange for his fee. Maybe the lender will consent to his being paid out of the sale proceeds. You will also the mental relief of having some of your burden placed on more experienced and knowledgeable shoulders.
Real estate agents can be a great help when you find yourself in such a situation. They will not only help you sell your home but will also help you find homes for sale in Superior CO or Sedalia Colorado.
