ZenithPropertySolutions.com/blog » Headache http://www.zenithpropertysolutions.com/blog Real Estate Blog from Owen McGab Enaohwo; a Maryland Short Sale Specialist, Real Estate Investor & Realtor Tue, 10 Aug 2010 06:20:56 +0000 en hourly 1 http://wordpress.org/?v=abc CreativeCommonsAttribution-Share Alike 3.0 http://creativecommons.org/licenses/by-sa/3.0/ owen@zenithpropertysolutions.com (Owen McGab Enaohwo) owen@zenithpropertysolutions.com (Owen McGab Enaohwo) posts 1440 http://www.zenithpropertysolutions.com/images/owen_head.jpg ZenithPropertySolutions.com/blog » Headache http://www.zenithpropertysolutions.com/blog 144 144 http://feeds.feedburner.com/ZenithPropertySolutions Insights from Owen McGab Enaohwo; a Maryland Real Estate Investor & Agent | Passive Investing Tips & Short Sale Information Hi my name is Owen McGab Enaohwo, I am a Maryland Real Estate Investor & Agent. I freely share my insights and information on my blog where you will find passive investing tips, short sale information and also real estate deals. I guarantee it! Real, Estate, Blog, Investor, Agent, Investing, Marketing, Information Owen McGab Enaohwo Owen McGab Enaohwo owen@zenithpropertysolutions.com no no Take a dose of the Short Sale pill from your local Realtor to relieve your Mortgage payment Headaches http://www.zenithpropertysolutions.com/blog/2010/02/10/take-a-dose-of-the-short-sale-pill-from-your-local-realtor-to-relieve-your-mortgage-payment-headaches/ http://www.zenithpropertysolutions.com/blog/2010/02/10/take-a-dose-of-the-short-sale-pill-from-your-local-realtor-to-relieve-your-mortgage-payment-headaches/#comments Wed, 10 Feb 2010 20:03:13 +0000 Owen McGab Enaohwo http://www.zenithpropertysolutions.com/blog/?p=240

You have been hit so badly by the economic downturn. Your finances are not in a good shape. You’re having a hard time paying the mortgage on the house, and you are sure that in time the lender will start foreclosure proceedings against you. You want avoid that, but don’t know how. A short sale can help you avoid foreclosure. Do you have an idea what a short sale is? Do you know of any one who went through the short sale process?

I will define the term short sale, so you can make an informed decision on whether to go through with a short sale or not, but before that, let me take a step back and discuss your current situation. This is the common process everyone else went through before they decided that a short sale was in their best interest.

How you got to where you are now

You had to take a loan from a lending institution and your house was used to secure the loan. The loan is most likely for the house you are living in right now; or maybe for something else. You are going through financial hardships, and you have been unable to pay the monthly payment for the loan. You are also more than 60 days behind in payments. You are aware that the value of your property is less than the amount you owe the lender. The lender has been sending collection notices and could initiate foreclosure proceedings against you. You want to avoid a foreclosure. And honestly, your lender wants to avoid foreclosure too. But if they allow time to pass, your loan interest and penalties will increase, and the lenders loss due to your non-payment will also increase. You and the lender are in situation where both of you are losing.

A short sale benefits you and the lender

A short sale allows you and the lender to lessen your losses, keep this in mind because it is the most important reason for deciding to move forward with a short sale. Plus, you are the one who initiates the process to begin with. In a foreclosure, it is the lender who takes action. In most cases, the lender will find ways to avoid initiating a foreclosure. Why? Because a foreclosure process is lengthy and costly for the lender, and the lender does not receive any payments from you, only the deed to your house. One important detail you should be aware of is this -in a foreclosure, you will not be able to get a loan to buy a new home within 5 years, even if your financial situation has improved. In a short sale, you can buy a new house 2 years after. The cost to the lender is lesser, plus, you are able to pay part of the loan amount that you borrowed from the lender. You can negotiate the remaining balance of the loan with the lender. You are also able to avoid foreclosure, a word many financially challenged homeowners were not able to avoid.

How to start the short sale process

This course of action begins when you, the borrower decides that a short sale is the best option. You start the process by contacting a local Real Estate Agent to assist you by listing the property for sale on the Multiple Listing Service (MLS). Immediately the agent will contact your lender on your behalf to make them aware of your situation and the need for a short sale. This is done so that the agent can get the list of all the necessary documents your lender will require and also to find out what steps that your lender requires you follow in order to begin the short sale process. Having a professional real estate agent assisting you with this process will allow you to maximize your time with other pressing concerns. The real estate agent will represent you in negotiating the short sale with the lender and getting it approved; from listing the property and up to the point where your house is sold.

Now, please bear in mind that in a short sale, you will not receive any payment from the buyer of your house because all of the proceeds will be paid to the bank to pay for your loan. And that amount is usually less – or short of – the total amount you owe the lender. The short sale process is initiated to lessen everyone’s – you and the lenders’ – loss.

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Do you know a homeowner in financial distress? Do you think a short sale will be right for them?

Give this much thought. If you have questions, feel free to ask me and don’t forget to leave your comments and suggestions on my blog.

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]]> http://www.zenithpropertysolutions.com/blog/2010/02/10/take-a-dose-of-the-short-sale-pill-from-your-local-realtor-to-relieve-your-mortgage-payment-headaches/feed/ 0 4:23 You have been hit so badly by the economic downturn. Your finances are not in a good shape. You’re having a hard time paying the ... You have been hit so badly by the economic downturn. Your finances are not in a good shape. You’re having a hard time paying the mortgage on the house, and you are sure that in time the lender will start foreclosure proceedings against you. You want avoid that, but don’t know how. A short sale can help you avoid foreclosure. Do you have an idea what a short sale is? Do you know of any one who went through the short sale process? I will define the term short sale, so you can make an informed decision on whether to go through with a short sale or not, but before that, let me take a step back and discuss your current situation. This is the common process everyone else went through before they decided that a short sale was in their best interest. How you got to where you are now You had to take a loan from a lending institution and your house was used to secure the loan. The loan is most likely for the house you are living in right now; or maybe for something else. You are going through financial hardships, and you have been unable to pay the monthly payment for the loan. You are also more than 60 days behind in payments. You are aware that the value of your property is less than the amount you owe the lender. The lender has been sending collection notices and could initiate foreclosure proceedings against you. You want to avoid a foreclosure. And honestly, your lender wants to avoid foreclosure too. But if they allow time to pass, your loan interest and penalties will increase, and the lenders loss due to your non-payment will also increase. You and the lender are in situation where both of you are losing. A short sale benefits you and the lender A short sale allows you and the lender to lessen your losses, keep this in mind because it is the most important reason for deciding to move forward with a short sale. Plus, you are the one who initiates the process to begin with. In a foreclosure, it is the lender who takes action. In most cases, the lender will find ways to avoid initiating a foreclosure. Why? Because a foreclosure process is lengthy and costly for the lender, and the lender does not receive any payments from you, only the deed to your house. One important detail you should be aware of is this -in a foreclosure, you will not be able to get a loan to buy a new home within 5 years, even if your financial situation has improved. In a short sale, you can buy a new house 2 years after. The cost to the lender is lesser, plus, you are able to pay part of the loan amount that you borrowed from the lender. You can negotiate the remaining balance of the loan with the lender. You are also able to avoid foreclosure, a word many financially challenged homeowners were not able to avoid. How to start the short sale process This course of action begins when you, the borrower decides that a short sale is the best option. You start the process by contacting a local Real Estate Agent to assist you by listing the property for sale on the Multiple Listing Service (MLS). Immediately the agent will contact your lender on your behalf to make them aware of your situation and the need for a short sale. This is done so that the agent can get the list of all the necessary documents your lender will require and also to find out what steps that your lender requires you follow in order to begin the short sale process. Having a professional real estate agent assisting you with this process will allow you to maximize your time with other pressing concerns. The real estate agent will represent you in negotiating the short sale with the lender and getting it approved; from listing the property and up to the point where your house is sold. Now, please bear in mind that in a short sale, you will not receive any payment from the buyer of your house because all of the proceeds will be paid to the bank to pay for your loan. And that amount is usually less – or short of – the total amount you owe the lender. The short sa Real Estate, Real Estate Agent, Short Sale Owen McGab Enaohwo no no