So, what re-course do homeowners have? SHORT SALE! SHORT SALE! SHORT SALE! Find an experienced, diligent realtor in your area and call them for a consultation. In a short sale the bank accepts less than what's owed on the property rather than going through the foreclosure process. The best part is that a short sale doesn't effect your credit report for 7 years like a foreclosure. So, you can move on and get a fresh start.
There are some restrictions. You must have a valid hardship such as; job loss, financial difficulty, earning less money, illness, divorce, death, job transfer for consideration.
Banks don't want to be in the business of selling real estate, so they don't want your property back!
As of the month of April, the Treasury Department started a new program to make the short sale process even more painless. Some of the key aspects of the program are:
1. Lenders are required to answer a request for a short sale within 10 business days of receiving the purchase offer.
2. Homeowners also get $1500 in cash as a "relocation incentive" to cover moving costs, deducted from the sale price.
3. Mortgage lenders, in turn, receive $1000 to help cover and speed up the process of the sale.
Now let's compare the other options out there:
Loan modifications are a horrific, lengthy process and you may not even qualify.
Foreclosures stay on your credit report for 7 years and actually it's permanently recorded with the county records where it's filed.
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