Short Sales Offer Homeowners a Second Chance

In today’s real estate market, over 30 percent of U.S. homes in towns are empty because of housing downturn, and this is driving homeowners into a frenzy, causing them to look for whatever option they can to stop foreclosure on their homes. Luckily, there is another option that can save homeowners from completely losing all the money they have placed into their home.

If the homeowner has already talked to the back to try to figure out a payment plan that is affordable and stop foreclosure on their house, what is most important is to try to save your credit rating and escape foreclosure. The best way to do this is by trying to negotiate a short sale with your lender.

A short sale occurs when a home is less than its mortgage, or an upside down mortgage, and the lender agrees to absorb the difference in a sale. This is the last chance for many homeowners in order to stop foreclosure, as a short sale on a home does not make the homeowner any money. It does, however help rescue your credit rating and not face an embarrassing foreclosure on your home.

In order for a homeowner to qualify for a short sale, the loan must be in default at least two months, the house must be worth at least 63 percent of what is owed and sell for at least 82 percent of the "as-is" appraised value, the house must be sold within three to five months and the lender must be convinced to assume the cost of the short sale:

Trying to convince a lender to agree to a short sale is difficult, which is why getting short sale help from a short sale company may be best. They may have more leverage with lenders and be able to guide you through the process. They will also be able to help you find a buyer.