Stay Or Go? When To Short Sell

Are you underwater in your mortgage? Having trouble making payments? Many people today want to stay in their homes but don’t see the light at the end of the tunnel. It’s true that some may be better off with a short sale or foreclosure. Then there are others who may be able to keep their homes.

Let’s walk through the steps in deciding whether or not you can or should keep your house.

  • If you have reached the point where you can no longer make payments, or are depleting your savings making payments, go to the next step.
  • If you have decided you want to try and keep your home, keep reading.
  • The next step is to look into a loan modification. Call your lender and ask about two programs: HAMP and HARP. You may be able to qualify for these government assisted programs. If so, you are on your way to keeping your home. If not, or if the modification does not make your house payments affordable, then keep reading.
  • Your next stop should be a visit to a qualified real estate attorney. Get a written legal opinion on your deficiency liability. It is critical that you understand the financial ramifications of the next step.
  • The attorney recommends a short sale or going into foreclosure. In some cases, a foreclosure may be better for the homeowner due to increased deficiency protections. In other cases, a short sale may be the route to take.

If you decide you can stay in your home, congratulations. If a short sale is best for you, then make sure to hire a qualified short sale realtor to help you work through the process.