Homeowners who find themselves on the verge of losing their home through a foreclosure are probably searching for any way possible they can stay in their home. Some may think that a mortgage short sale can achieve that.
Actually, a mortgage short sale can’t keep you in your home. In fact, if you try to get a friend or family member to buy the home and then pass the deed back to you, then you could be in a whole lot of trouble. That action is known as fraud. When you do a short sale, you are obligated to legitimately offer your home in the marketplace and accept the best price. That way the lender can get at least a bit of his investment back.
In short, if you find yourself in this scenario you have to bite the bullet, short sale the home and walk away.
Still, a Mortgage Short Sale can preserve your credit which puts you in a position to buy a new home in the not-to-distant future. Sure, it will be difficult to get a new loan under this new set of circumstances, but there are ways to get a home for very little or no money down, no qualifying and bad credit. But to put yourself in this position you need to be prepared to negotiate with the lender your new credit rating. Of course, you want to avoid foreclosure. But if you are able to negotiate a rating of Unrated or even Paid Settlement, then you’ve put yourself in a position to be able to buy a new home.
If you find yourself on the verge of losing your home, consult with an expert about short sale. And also learn from that expert the ramifications of the ratings you could receive from the lender.
