Thursday, January 14, 2010

Choose Short Sale over Stop Foreclosure Sale

If you are in the unfortunate position that your home in Phoenix, Arizona has been foreclosed on, there are very few options to stop foreclosure sale. The easiest way to stop foreclosure sale is to stop the foreclosure is before it is ever finalized.

Due to the fact that millions of Americans are worrying about how they will stop foreclosure sale, the feds in Washington are rolling out lots of ideas and programs to help you stop foreclosure sale and keep you in the home that you are in. Many times you should talk to your mortgage lender first to see if there is anything you can do to stop foreclosure sale. It is sometimes possible to modify your existing mortgage loan to make the payment terms more comfortable for you. In rare cases, lenders in Phoenix, AZ will sometimes allow you to simply add the missed payments on to the end of the loan. However, chances are that you face the quandary of how to stop foreclosure sale because you can’t make the payment at all. So, if this is the case, adding the payment to the end of the loan just won’t help.

Look into the details of your mortgage agreement to see if you have a right of redemption. While this will not stop foreclosure sale of the home, it may give you an extended period of time to get your financial situation out of disarray and get you back to making payments in a timely manner.

However, the most preferential way to deal with foreclosure and to stop foreclosure sale is to not reach foreclosure at all. You know whether or not your financial situation can be rectified. If your situation has positive outcome in the foreseeable future, the best case scenario instead of trying to stop foreclosure sale is to sell your house before it is foreclosed on.

Sometimes, the concern with a home owner is that the house will not get enough money to pay off the existing mortgage. In cases such as this, the lender might agree to a short sale. A short sale is where the lender agrees to take what ever they can get from you selling the home. Then, they give you a pass on the remainder of the mortgage note.

With a short sale, obviously, you will not be keeping your home because you have just sold it. However, you were able to stop foreclosure sale, because you never had to face foreclosure. The bank allows you to get out from under a debt that you can not repay. Furthermore, your credit is not tarnished as it would be with a foreclosure. So, you are free to find a new home that is more suitable to your financial abilities at the time.

The short sale helps you stop foreclosure sale before you ever face foreclosure. It is the best option for a bank that wants to get the most from the sale of the home and a home owner who can no longer pay the mortgage.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

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