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SHORT SALE
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A short sale is where a loan lender agrees to accept less than what is owed on a
mortgage from a homeowner. Usually when a short sale occurs, the homeowner has to
provide the difference between what the home was sold for, and what is left on the
loan through payments or assets. Lenders are in business to make money by closing
loans and servicing them. In order to be considered for a short sell, homeowners
have to meet certain requirements. Mortgage payments must be late, or the lender
must have already started the pre-foreclosure process. If the homeowner is facing
any hardships such as recent unemployment, death in the family, or increase in other
debts which are forcing a homeowner into a
foreclosure, they may qualify for a short
sale as long as the hardship can be documented.
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Another factor involved in a short sale is the current value of the home. A home
that has a market value that is less than what is owed is a good candidate for a
short sale. When considering a short sale it will always be in the best interest
of the homeowner to contact an experienced licensed professional before proceeding
with the steps involved in this process.
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DEED IN LIEU
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A deed in lieu of foreclosure is an agreement reached between a homeowner and a
lender in which the homeowner turns over the deed to the home, and the lender agrees
to halt foreclosure proceedings. Negotiating a deed in lieu of foreclosure agreement
is one of the few ways to avoid
foreclosure, but many people view it as a last resort,
since it can potentially have a negative impact on the homeowner's credit record.
Also, a lender may not be willing to negotiate, as most lenders want cash, not real
estate which they will have to manage or sell. |