Do You Owe More Than Your Home is Worth? Watch this Video!

Do You Owe More Than Your Home is Worth? Watch this Video!

Hi, my name is Jennifer Young with Keller Williams Realty and I just got off the phone with a seller who is considering a short sale. I wanted to share some of the thoughts from the conversation with you. It’s really important to know your options when you are behind in your mortgage or considering a short sale. Because once you go delinquent, the bank’s going to send you a lot of information and try to get you to pay your mortgage or do other options that may not be in your best interest.

1. Loan Modification

So I wanted to review the four options you have when you’re upside down in your mortgage and possibly delinquent in your mortgage. The first one is a loan modification that you can attempt to restructure the loan with your bank to get a lower monthly payment and help you out of the monthly payment basis.

2. Short Sale

The second option is a short sale. That’s when you’re upside down in your mortgage, having some type of financial trouble or some sort of hardship and you list your property for current market value and the bank takes a loss on that amount. That’s usually your best option if you can no longer afford the home.

3. Died in Lieu

The third option is a deed in lieu of foreclosure. It’s essentially a voluntary foreclosure where you agree to give the title and keys back to the thing in lieu of them foreclosing on you. The bank likes you to lieu of foreclosure because it costs them less money and less headache and you’re just giving the property back to the bank. But you should never do a deed in lieu of foreclosure without first trying a short sale. It’s a better long-term credit impact and in a short sale you can negotiate a waiver of deficiency judgment and you can’t negotiate that in a deed in lieu of foreclosure.

4. Foreclosure

Foreclosure is always your last and worst option. It has a much more long-term, more negative private impact and not ideal and so if you can ever avoid a deed in lieu of foreclosure or foreclosure you want to do that. Always try for loan modification and a short sale first. If you need any other questions or want to talk further about your situation give me a call.

If you are in a possible short sale situation and want to get more information about the process, please call us. We would like to help you understand what you need to know about a short sale and if you qualify! We have successfully sold over 350 short sales! Yours may be next!

Jennifer Young Homes

Keller Williams Realty

(703) 774-9572

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Stop the Pain of Foreclosure!