BEFORE YOU SHORT SALE
WHAT CAN I AFFORD
CALL THE LENDER - YPC can help with this
CALL THE LENDER - YPC can help with this
Before you make any moves to call your lender, put your home on the market or use savings, retirement or credit cards to pay your mortgage, figure out what you can afford and how to move forward.
CALL THE LENDER - YPC can help with this
CALL THE LENDER - YPC can help with this
CALL THE LENDER - YPC can help with this
Call your lender within the first 30 days of not being able to pay. Ask for a Forbearance or a Loan Modification.
A forbearance is a special agreement between the lender and the borrower to delay a foreclosure. A Loan Modification changes the terms of the mortgage to make your monthly payments more affordable. You can ask to change the interest rate or length of the term.
CAN I RENT MY HOME
FORECLOSURE VS SHORT SALE
FORECLOSURE VS SHORT SALE
If this is temporary, sometimes renting the home for a year or 2 will allow you to recover. Here is the formula.
- Current Monthly Mortgage +
- Current Monthly Taxes +
- Current Monthly Insurance +
- Water & Sewer +
- $100 a month for repairs or 10% management fee =
- COST FOR RENT: If this amount is less than current market rents then YES RENT IT! If this amount is more, then you will be paying for someone else to live.
FORECLOSURE VS SHORT SALE
FORECLOSURE VS SHORT SALE
FORECLOSURE VS SHORT SALE
By now you all know what a foreclosure and a short sale is so I won't go into that. This is about what should you do.
FORECLOSURE
- Stay in the house until it forecloses (4 months + 111 days)
- Have a stain on your credit for up to 7 yrs
- Have EQUITY you will get less money back than if you sell outright
- If you refinanced you may have to pay the loan back or you may have a hefty tax bill
SHORT SALE
- Have EQUITY you will be done sooner to gain more money
- No equity no money out of pocket
- Stops the foreclosure
- Possibly get "cash for keys"
- Have a stain on your credit for 1 - 3 years
AVOID FORECLOSURE Options
Is your Situation Temporary? Rent the home
If this is an option you want to be sure that your payment is covered: Here is what you want to include:
- Mortgage Payment
- Taxes
- Water & Sewer
- Insurance
Loan Modification
CALL AS SOON AS YOU KNOW YOU WILL NOT BE ABLE TO MAKE YOUR PAYMENT!!!!!
We can help you speak with your lender to be sure you are getting the best deal. You will want to ask for:
- Loan Reduction & Forgiveness
- Longer payment Period (40 Years)
- Reduced interest rate
Short Sale
Short Sale is only if your home is worth less than you owe! When the first 2 don't work, give us a call. We can help you determine if this is a short sale or an equity sale. We can work with you get it listed and sold within a time frame that is right for you. We work with the lender and update you throughout the process.
- No out-of-pocket fees
- Permanent Relief
- Possible Money back at closing
- Expert Short Sales Negotiator on your side
- Buy a home in as little as 2 years
- Least damaging to your credit score
Foreclosure
Foreclosure is an option but not your best one! Especially if you have equity in the property!
- Up to 7 years before you can buy a home
- Most damaging to your credit
- Possible major tax ramification (check with your CPA)
- If you have refinanced you may owe the lender money
Non Judicial States take some time to foreclose.
Here is the timeline:
- 3 - 4 months to receive an NOI (notice of intent to foreclose)
- 30 days after the NOI you will receive an NOD (Notice of Default) This is a very pubic notice
- 111 days after the NOD they can foreclose - this is 90 days + 3 weeks of advertising