Facing Foreclosure in Cincinnati?

 

Need to a Short Sale Northern Kentucky?

Facing Foreclosure in Cincinnati?

Hard financial times may strike without notice, and refinancing or modifying your mortgage may not be an option. An alternative to foreclosure is a short sale.  Need to do a short sale on your home? A short sale offers a similar result to foreclosure but with a much lesser penalty. It also allows for settlement on better terms.

So, what’s a short sale and how can it benefit you?

A short-sale, also referred to as a pre-foreclosure workout or a short payoff, is an arrangement in which a lender accepts an amount lower than the cash owed through selling the real estate held as security to another person. A foreclosure after bankruptcy is a worst case scenario and can cause a credit rating drop of over 250 points. Qualifying for a mortgage with reasonable rates will take years after the foreclosure has occurred. Short sales, however, show up as pre-foreclosure in redemption on the credit report. They have a less punitive effect, showing a credit rating drop of up to 100 points and nowadays as little as 10-20 points. The mortgage may appear on your report as discharged after you sell the property. Short sales also reduce the requalification time for a mortgage to a reasonable 18 months.
A foreclosure after bankruptcy is a worst case scenario and can cause a credit rating drop of over 250 points. Qualifying for a mortgage with reasonable rates will take years after the foreclosure has occurred. Short sales, however, show up as pre-foreclosure in redemption on the credit report. They have a less punitive effect, showing a credit rating drop of up to 100 points. The mortgage may appear on your report as discharged after you sell the property. Short sales also reduce the requalification time for a mortgage to a reasonable 18 months.

Different circumstances, such as depreciation of property so that its worth less than the amount owed, are grounds for negotiating a short sale. Proof of some hardship has to be shown for the lender to accept this arrangement. Hardship is some circumstance that is preventing you from paying your loan or that will prevent you from doing so in future. A lender and borrower may agree to this arrangement for several reasons, such as the death of the breadwinner or loss of your job. This hardship does not have to have occurred for you to qualify. Showing proof of a future event that will make you unable to pay can also work. An example would be a pending divorce or mounting health bills.

Need to short my mortgage in Cincinnati.

Apart from hardship, Some financial documents will also be needed. They include your mortgage statements, documents showing your other debts and your income details. In most cases the mortgage companies would be willing to help avoid foreclosure and will be open to working with you. The sooner you start the short sale process, the better, and the more satisfactory the result will be as it will give you time to negotiate.

The short sale process is similar to a regular sale, only that your mortgage company works with you and your agent to:

Set a sale price based on an evaluation of the property,

– Negotiate with any other lien holders of the property if available,

– Review offers from prospective buyers,

– Come to an agreement on the sale terms immediately after finding a buyer and,

– Help finalize the sale by collaborating with the buyer’s real estate agent and even a mortgage lender if available.

Additional benefits include reducing or eliminating your mortgage debt as well as relocation assistance, which could be in cash form in some cases.

The time it takes to finalize a foreclosure will depend on your situation. When all else fails, and you are not able to sell the property, you may be able to transfer ownership to your debtor. This is also known as mortgage release or deed in lieu of foreclosure.

If you’re unsure of which direction to take or your facing foreclosure, don’t hesitate to reach out to us- we’re here to help!

 

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