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June 05 2009 - US
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Q. What are your options as a home seller when your property is in or heading toward default?

A. In the event that you have been delinquent in paying your mortgage or anticipate that you will not be able to make payments moving forward, your options will vary based upon several factors or variables that are specific to you and your property. Always remember that each possible resolution will be evaluated on a case-by-case basis by all parties involved.

When considering your options, you should take into account:the amount of equity you have in your property compared to the outstanding loan balance the additional financial resources you may be able to bring to bear whether or not you live in a homestead state, and the nature and amount of the homestead exemption and/or the amount of private mortgage insurance you have.

All of these factors should be taken into account along with many other variables and special conditions.
The most important decision you need to make is to "make a decision." Typically, when homeowners avoid confronting the serious lifestyle and financial consequences of defaulting on their mortgage, they end up with a significantly more deleterious outcome than they would have, had they taken charge of their own destiny while they could.
Once you decide to take action, we recommend that you contact a lawyer and a real estate agent qualified to assist with your special real estate needs. I am not just committed to helping you pursue the potential option of a short sale, but to encouraging you to fully consider all other options that may be available.
Early on in the potential foreclosure process, all homeowners should not only contact an attorney, but also research all potential guidance and assistance available from the government, including the U.S. Department of Housing and Urban Development (HUD). HUD's Guide to Avoiding Foreclosure may be particularly helpful. HUD's toll-free telephone number is (800) 569-4287.

Not all homeowners, however, can qualify for certain HUD programs. Whatever guidance you seek as a homeowner, we recommend, at a minimum, that you also carefully consider each of the following questions and answers:
Questions:
What is a better or more likely outcome for me and why?A short sale or a foreclosure?
A short sale or a repayment plan?
A short sale or a forbearance plan?
A short sale or a loan modification?
In the case of an FHA loan, a short sale or a partial claim?
A short sale or a short sale/assumption agreement?
A short sale or a deed-in-lieu of foreclosure?
A short sale or a bankruptcy?
Answers: Any and all of the above-mentioned options pursued by homeowners should take into account their:individual present and projected future financial circumstances
short- and long-range lifestyle goals
concerns over credit rating
desire to remain living in their present home
a complete understanding of the impact each available option might have in comparison to all other options being considered
It is important to note that short sales usually benefit home sellers because they not only stop mortgage foreclosure, but typically prevent the lender from suing for deficiency. Deficiency refers to the difference between the outstanding loan amount and what the net proceeds are from the sale of the home, or in some cases, simply what the proceeds are that the lender receives from the sale of the home.

During their short sale negotiating process, it is vital that homeowners have the lender agree to fore go suing for any monies that are written off due to the short sale.
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June 10 2009
waht's the question/comment?
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June 05 2009
 
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