Should I Short Sale My Riverview Home?

For those who are wondering if they should do a Riverview home short sale to avoid a foreclosure, this is an option that can help. If they are having trouble keeping up with the payments and have tried other avenues to save their home, a Riverview home short sale can be the solution. When a short sale is approved by the lender, they end up getting less than the owed amount, but in the long run they have saved several thousand dollars.

A Riverview home short sale can be beneficial to both the owner and the lender. If the home is foreclosed on, the lender will have to deal with trying to get the money they have tied up in the property back. Going through foreclosure and the ensuing sale is expensive. The homeowner initiates the Riverview home short sale and takes offers to their lender. If the offer is approved, the balance of the money owed is typically forgiven and the homeowner does not default on the loan.

Usually a short sale is considered is when a homeowner has a financial setback that makes paying the mortgage impossible. This can be loss of employment or a serious illness. The mortgage payments fall behind and foreclosure is looming in the near future. Often the homeowner owes more than the home is worth.

Short sales are not a new concept. They have been in use for many years. The state of the economy today has escalated the short sale into the limelight due to the problems homeowners are facing. Many people have lost their jobs and exhausted their unemployment benefits. Jobs that are available do not pay enough to keep up the payments they had.

Home prices have declined and many people owe far more on their homes than what they are worth. The mortgage is behind by several months because in trying to keep their head above water, the homeowner may have to choose between putting food on the table and keeping the utilities on or making the payment.

The ultimate decision is up to the lender and they do not always approve short sales. The less complicated the process will be, the more likely the lender is to approve it. When there are other mortgages on the home or if the homeowner is in bankruptcy the mortgage company may decide a foreclosure is in their best interests.

In addition, the contact with the mortgage company to consider a short sale must be started by the homeowner. One of the requirements for a lender to consider a short sale is proof that the homeowner has a hardship which caused the delinquency, the situation is not likely to improve anytime soon and the outcome is going to be foreclosure if they cannot find another solution.

Although a short sale may not be the answer for everyone, it is an option that can be quite beneficial for many. If approved, the homeowner will not have a foreclosure on their credit report. It will show as a settlement that was paid for less than the amount owed. Still, this is better than a foreclosure.

For more information about Riverview Short Sales or homeowner assistance programs, please visit our “Find a Local Counselor” page, complete the form and we’ll be happy to assist you further.