COLUMBIA — For homeowners upside-down on their mortgage — owing more on the loan than the house is worth — foreclosure isn’t necessarily the only option
There also is a short sale.
A short sale is when a financially troubled homeowner, with the lender’s approval, sells his or her home for less than what’s owed on the loan.
Columbia homeowner's one of the main benefit of a short sale is that in many cases you may get out from under your mortgage without liability for the deficiency. A deficiency occurs when what you owe on your mortgage exceeds the amount you get when you’ve sold your home.
It is a negotiated loss to the bank between borrower and bank. “You may not even get hit with a deficiency judgment — off the hook.”
But please Columbia homeowner's don’t expect the process to be simple and effortless. Remember you are asking the lender to take a loss on your mortgage, and the financial institution won’t agree to that easily.
Gather your records: Columbia homeowners if you choose a short sale, be prepared to justify it.
Because you will be selling your home for an amount that won’t cover your loan, you can be sure your lender will want to be absolutely certain you have no other means to pay your mortgage.
“Getting out of a loan is just as hard, if not harder, than getting qualified for a loan. “They’re going to check your finances to make sure you don’t have money hidden away.”
Columbia homeowners be prepared to provide bank statements, tax returns and other documents.
“They will make sure your account is not reflecting any income coming in, “They’re going to make you prove you can’t afford it.”
#1 Columbia homeowners need to find a real estate agent who has done short sales before.
“It’s a complex transaction that requires a lot of paperwork to go to the lender in the correct process. “If not, the short sale dies, and the consumer in most cases ends up being foreclosed on.”
The Columbia real estate agent will help you price your home so the short sale will go through.