A short sale is when a mortgage bank will accept less money than what is currently owed on the property. Not to mention, they will give back any type of collateral that was used in the financing. This will benefit the seller in the end if they are experiencing a financial hardship and are no longer able to make payments on their loan.
Banks and realtors do not want to lose the property in a foreclosure. They would rather receive less money than receive no money at all. For this reason, a realtor will more than likely accept the sale to avoid a foreclosure. Thus, benefiting both the seller and the realtor. There are a few short sale options to choose from, if you qualify. Consult our guide to short sales in order to better navigate short sales in Dane County.
Cooperative Short Sale Programs
This will pay a substantial amount of money to you to relocate. If you qualify, the foreclosure will be put on hold once a buyer is interested in purchasing the property. To be eligible you would have to be disqualified by the Federal Government’s Home Affordable Foreclosure Alternative loan.
Affordable Foreclosure Alternatives
This will pay a substantial amount of money for you to relocate. If you qualify, the foreclosure is put on hold once a buyer is interested in purchasing the property, but with a deficiency waiver which will forgive the debt. This will put a notation of “paid in full” in the records. To be eligible the loan can not be under Fannie Mae or Freddie Mac. Also, the home can not be condemned, but be a liveable piece of property.
The Federal Housing Administration Short Sale
This will provide a possible relocation assistance, the foreclosure is on hold if there is a purchaser, and a deficiency waiver takes place. If you have a FHA loan contact the organization to make sure all are in agreement with the short sale opportunity. This is a great short sale for you if you do not qualify for another FHA loan. To be eligible you must not qualify for a loan modification.
The Traditional Short Sale
This Process may fit your need better. The court will not serve you an eviction notice and your house will not be sold at auctions. To be eligible you must have financial hardship like not being able to pay the monthly mortgage.
As seen, there are a few options one can use to help prevent a foreclosure, clear the debt of the property, and/or prevent a court eviction. Not to mention, the savings that first time home buyer’s and a seller will receive. Take advantage of the Short Sale opportunity. Research and master the art of these four Short Sale opportunities and see which one you qualify for or take advantage of the savings!