10 Reasons Why A Short Sale May Be Best For You

Is Your Home Underwater?

You are not alone.  30%-42% of all homes in the U.S. are upside down.  The amount of sale transactions that will be handled through short sales in the next five years is about 85% of all loans issued between 2005 and 2007.  Loan modifications for the most part don’t work, because without principal reductions, homeowners will fall back into default.

If you have a negative equity upward of $75,000 , you may want to consider a HAFA short sale.  Here are the reasons why:

Reason #1: There is absolutely NO cost to you.

Reason #2: As mentioned above, your loan modification more than likely will not be the answer.

Reason #3: You are Upside Down in your home and your lender will not do a principal reduction.

Reason #4: Short Sale gets you out of this bad debt so you can start all over again.

Reason #5: If you foreclose the lender may pursue you for the loss.

Reason #5: Bankruptcy does not stop foreclosure and will prevent you from owning again for at least 5 years.

Reason #6: You avoid evictions and may be able to stay in your property longer.

Reason #7: There is less damage to your credit report.

Reason #8:  You may qualify to buy again and you won’t be upside down anymore.

Reason #9:  You receive up to $3,000 in relocation assistance.

Reason #10:  Peace of mind, NO more arguments with your spouse, start new and get a good night’s sleep!

The government really wants to solve the housing crisis, and this latest HAFA program shows they really do.  Here are some of the reasons why:

1 –  The Servicer is no longer required to verify income.  Borrower still needs to sign a hardship letter.

2 –  The rule on vacant and rented properties has changed.  The property can be rented or vacant for up to 12 months prior to the short sale approval as long as it can be proven the home was a primary residence before being rented/vacated and the homeowner has not purchased another home (1-4 units) for 12 months before the short sale approval.

3 –  Relocation no longer has to be work related and there’s no minimum relocation distance.

4 –  The 6% cap for junior lien holders has been eliminated.  Senior lien holder to determine how much they want to pay each lien holder, up to $6,000.

5 – Borrowers no longer have to wait to be invited to HAFA.  If they request it and they qualify the lender has to issue an approval within 30 days.

6 –  The whole timeline for a short sale completion is reduced.  Traditional short sale takes from 90 days to over a year sometimes.  With a HAFA short sale, you can close escrow in 90 days or less.

I am a California realtor and a distress property specialist.  I can get you a free telephone consultation with an attorney who can help you analyze your particular situation and recommend the best way for you to proceed.  Just complete and submit the form below:


About lilynyland

Former Realtor at Coldwell Banker George Realty in Alhambra, California. Graduate Realtor Institute (GRI), Accredited Distress Property Specialist (ADPS), Short Sale & Foreclosure Resource (SFR).
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