Loss Mitigation with a Real Estate Expert

Many home owners in Phoenix, Arizona are concerned about all of the foreclosures going on in the country today. However, they needn’t be worried as loss mitigation to avoid foreclosure is available to them if they know where to look. Many lenders are now working with home owners in difficult positions to find loss mitigation through loan modifications and the short sale of their home. There are many positive things to be said about short sale as a method of loss mitigation for the home owner.

Your lenders loss mitigation department can help you come out of your current financial situation without too much negative effect. When you contact your bank’s loss mitigation department, you should tell them that you are having trouble and are seeking a loan modification or that you intend to short sell your home. Using one of these two techniques in conjunction with your bank’s loss mitigation department can ensure that you have a home to live in without being thrown out on the streets. The loss mitigation department at your bank has long used the loan modification process to help home owners get bank on track with their mortgage payments. However, short sales of homes has becoming a widely accepted way to avoid foreclosure and many loss mitigation departments are acceptant of this process to cut their losses and keep costs down for the bank.

Some thing to consider when you contact the loss mitigation department…

Although many lenders in Phoenix, AZ will tell you that the loan modification process is your best option, it is, in fact, their best option. They urge home owners to use loan modification because it nets them more money in the long run. The problem with loss mitigation through a loan modification is that most home owners can not afford to make the payments of a new loan schedule just like they couldn’t with their old payment plan. Also, if you do find a loan payment that is affordable through loan modification from the loss mitigation department, you will find yourself paying more money over the long haul because the bank often extends the life of your home.

It is also important to consider why you would want to pay the mortgage on your home that is no longer worth the original loan amount. For example, you took out a $250,000 mortgage to buy your home (valued at $250,000 at the time of purchase) but the value of your home is now just $100,000.

With this type of upside down mortgage, the short sale is certainly the best option for you. With the help of a real estate expert knowledgeable in the short sale process, you can often times sell your home for its current market value and use the entire offer amount to pay off your current mortgage loan. Despite the fact that the offer doesn’t cover the full payoff amount of your mortgage, the bank will accept it as payment in full.

Have a real estate expert explain the details of a short sale transaction to understand the full benefits. Loss mitigation through short sale of your home is clearly the best option.

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 ShortSalePowerhour.com

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Using a Mortgage Short Sale Program

A mortgage short sale program in Phoenix, Arizona is a service offered to many homeowners of the Phoenix Arizona area who are not able to make the payments on their mortgage with their current lender. The home owner wants to stop or avoid foreclosure. Mortgage short sale program essentially means selling your current property, which you have a loan for, to a seller at a lower price than the amount that would pay off your mortgage. The mortgage short sale has been proven to be very helpful for the homeowners who want to keep from doing major damage to their credit.

Some Features of the MORTGAGE SHORT SALE Program:

1. The mortgage short sale provide relief to all the homeowners in Phoenix, AZ who are in a difficult financial situation.

2. Mortgage short sale is a quick solution to avoiding foreclosure proceedings.

3. The home owner using a mortgage short sale can get bank on their feet in a shorter time period.

Benefits of a MORTGAGE SHORT SALE are:

· You have the ability to get loans from a bank or lender sooner if there is not a foreclosure on your credit record

· The mortgage short sale relieves you of debt and your mortgage would be settled with a smaller amount that if you ran the course of the payments.

· The buyer will get a good deal on your home that is probably in move in condition.

MORTGAGE SHORT SALE Process for Property Owners:

· Contact your lending institution to get the rules and guidelines of a mortgage short sale. We recommend that you find a real estate agent that has experience in dealing with a mortgage short sale.

· Your real estate agent can help you provide the bank with all of the necessary documents needed to execute a mortgage short sale.

· The lender will look at the documentation that specifies the proposed offer for sale of the property, current loan amount with your lender including overdue payments and fees, your real estate agents commission and fees that is taking care of the mortgage short sale.

· The home owner will need to write a hardship letter to the lender noting the reasons the need to execute a mortgage short sale in your situation. Along with your hardship letter you should also include the following; current and past bank statements, income documents such as pay stubs and the like to show the bank that you need to use the mortgage short sale program and that you can not make the mortgage payments.

· Your lender will probably negotiate on the sale price of your home with the real estate agent that you have chosen and finalize the purchase agreement that will be compared to the property value according to the markets current status.

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 ShortSalePowerhour.com

Technorati Tags: short sale,loss mitigation,avoid foreclosure,foreclosure

Consider a Mortgage Short Sale to Save Your Credit

Most things in Phoenix, Arizona today revolve around credit. Just ask a person that has poor credit or no credit at all. Poor credit or no credit can keep you from buying a car, renting an apartment or even getting a job. If you are a home owner facing the loss of your home, a mortgage short sale can save your credit. A mortgage short sale should be the first thing you consider in lieu of bankruptcy or foreclosure of your home.

The mortgage short sale process in Phoenix, AZ is probably something that you have never heard of or know little about. Although the process has been around for years, it has not been widely used until recently with the collapse of the banking industry and the housing market. The mortgage short sale can help home owners get out of their mortgage liability and retail relatively good credit.

Home owners who have a mortgage that is greater than their home’s current value can qualify for a mortgage short sale. There are very few prerequisite that need to be met to utilize a mortgage short sale. First, you must be late on your payments. It also helps if you have little to no savings, because you will be asking your lender to take a loss on the loan.

In most cases, the owner will have the balance of the home “forgiven” as soon as the home is sold in a mortgage short sale. In order to apply for a mortgage short sale, you must contact your bank and you should also contact a mortgage short sale specialist to help you through the process. Your lender will request some documentation and information so you can be approved.

It is highly recommended that you find a real estate expert with experience dealing in mortgage short sale procedures. Lenders are more likely to deal with a person like this than with the home owner. And, obviously, the real estate expert can expedite the sale of your home.

When it comes to a mortgage short sale, your credit score will not be tarnished as much as if your home went into foreclosure. When your mortgage short sale is complete, your credit report will say "pre-foreclosure in redemption" and may reduce your FICO score by around 100 points.

With a foreclosure, your credit report will have a higher giant impact of at least a 300 point reduction on your score. This fact alone should be sufficient reason to execute a mortgage short sale.

Because of this impact on your credit score, you can resume your life without the burden of poor credit in as little as two years. The result of a foreclosure will take you at least ten years to rebuild your name and credit score. Without a respectable credit score, your only option in maneuvering around this world is to pay cash for everything.

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 ShortSalePowerhour.com

Technorati Tags: short sale,loss mitigation,avoid foreclosure,foreclosure