Foreclosure or Bankruptcy is NOT the only answer! We can
Yesterday, life was
good. You were meeting your mortgage, had money for groceries and
the kids were happy. Today is different.
Know you are not
alone! This may not seem to helpful, but you are not alone. The
economy has forced many families to review their financial situation
and make adjustments. Throw in any additional roadblocks (loss of
job, illness, other hardships) and now you are overwhelmed.
Television and radio commercials tend to push bankruptcy as your
It's not the only
option. Even if you have received a foreclosure notice. There still
may be time. This is called a Short Sale.
A short sale can be an
excellent solution for homeowners who need to sell, and who owe more
on their homes than they are worth. In the past, it was rare for a
bank or lender to accept a short sale. Today, however, due to
overwhelming market changes, banks and lenders have become much more
negotiable when it comes to these transactions. Recent changes in
corporate policy and the Obama administration have also improved the
chances of getting a short sale approved.
But to be technical,
here's a more official definition:
For homeowners to
qualify for a short sale, they must fall into any or all of the
Hardship – There is a situation causing you to have trouble
affording your mortgage.
Shortfall – In other words: "You have more month than
money." A lender will want to see that you cannot afford, or
soon will not be able to afford your mortgage.
Insolvency – The
lender will want to see that you do not have significant
liquid assets that would allow you to pay down your
simple enough, but it is a complicated process that takes