Today’s housing market is still in startling disarray. So much so, that mortgage holders are more willing now than ever to work with home owners by approving 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 VA 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. A short sale looks better to future underwriters as it shows that you didn’t just give up but tried in earnest to find a buyer. In as little as two years you can buy a home again and obtain a VA mortgage loan in as little as 2 years.
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, if the mortgage holder has approved a short sale it is less likely that a vigorous foreclosure will ensue; Since the house is for sale, and may be sold, the lender makes more money.
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. A short sale is more appealing for both parties.
If you are looking for short sale advice, VA HLC is providing free counseling. There are many advantages of using a government subsidized buyer when short selling. You as a seller usually will not have pay anything out of pocket. In addition to this, using a government subsidized buyer will afford you more time to move out of 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.
If you are a homeowner and having a difficult time making your mortgage payments, contact us.
If you choose to have VA Home Loan Centers represent you in selling your home as a short sale, you can stop using our services at any time. VA Home Loan Centers charges no up-front fees to assist you with your short sale. Our partner real estate brokerages will charge a real estate commission but if the bank agrees to a short sale, this is paid for by your lender. VA Home Loan Centers is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change the terms of your mortgage including approving your short sale. It is recommended that you continue to make payments on your mortgage throughout the process. Should you default on your payments, you can see a negative impact to your credit report and your home could be foreclosed upon.