There are many myths surrounding short sales and trying to decipher fact from fiction can be quite a challenge. Having the correct information and knowing all your options is the only way to know if a short sale is the right choice for you. One of these myths is: You have to be behind on your mortgage to do a short sale. This is NOT true. I am doing more and more short sales where my clients are not defaulting on their mortgage.
While there are many reasons why a homeowner may want to continue paying their mortgage, the two main benefits are saving their credit and being able to
purchase a new home right away.
Credit Impact of a Short Sale:
In a short sale it’s not the actual short sale that impacts your credit score the most, it’s the late payments leading up to the short sale. By staying current you don’t have any of these late payment credit hits. Therefore, you keep your credit intact. Once the house closes you will get one “ding” on your credit for the actual short sale but that is it. This can make a huge difference on your credit score.
Buying a New Home after a Short Sale:
By staying current and not defaulting on your mortgage you can purchase a new home immediately after the short sale closes if you qualify. There is no waiting period.
The Bank pays you $3000 to do a Short Sale
You can be eligible for these programs if you are current or behind on your mortgage payments. The government HAFA (Home Affordability Foreclosure Alternative) program pays
qualified homeowners $3000 to do a short sale. If you don’t qualify for the HAFA program some of the banks are now offering their own Relocation Assistance Programs and offering incentives up to $3000 to the homeowner. I am having more success than ever before with getting our clients $3000 at closing. Staying current can be a huge benefit to homeowners who need to sell their home but are upside down and offers them the opportunity to get out from under an excessive mortgage, not damage their credit, and be able to purchase again right away.
Staying current may not be the right option or even a choice for some homeowners. Many homeowners doing a short sale are having financial difficulty and have already missed several payments or may even have a foreclosure notice by the time they start the short sale process. The good news is these homeowners are usually eligible for the $3000 HAFA program or bank incentive.
REMEMBER – THERE IS NO FEE TO THE HOMEOWNER TO DO A SHORT SALE – THE BANK PAYS THE REALTOR FEES AND CLOSING COSTS.
Contact me today to find out if you qualify to do a short sale while staying current on your mortgage and for the $3000 relocation assistance program or visit my website www.ArizonaShortSaleToday.com
By: Lorraine Ryall
Realtor, Certified Distress Property Expert (CDPE), CSSN
Cell: 602-571-6799
Email: Lorraine@ArizonaShortSaleToday.com
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