What is a Foreclosure?
When the bank files foreclosure on your property because you are in default, you have missed several payments on your mortgage, or you could be six months behind. The key is to get in contact with a Real Estate professional before you get too far behind.
What is A Short Sale?
A short sale is when your Lender ( the bank you have your mortgage with) agrees to allow you to list and sell your home for less than what you currently owe on your mortgage, including all the late payment and past due fees.
Example:
A person has a $250,000 Home Mortgage. A contract offer comes in at $220,000 meaning the person listed the house and gets an offer for a lower price than what he/she owes the lender. The Lender/Bank/Mortgage Company agrees to the take the lower offer and the person is not required to pay back the difference of the lower amount.
Can I Negotiate with the lender myself?
NO, this never works out; you need a qualified Real Estate Professional who is very familiar with handling short sales and the complicated process it entails. You must have the short sale listed by a Realtor who will handle the short sale and negotiate with the lender on your behalf.
Who pays the Realtor commissions and fees associated with the sale?
Your lender. This is part of the agreement when the lender allows you to short sale your home.
Do I have to move out?
NO, not unless you want to. The lender would rather you stay in the house, so it is not left vacant… Look into relocation assistance for the sellers. Most lenders, but not all will give you $1,500 -$ 3,000 relocation money to help you move. This varies by lenders.