When Should I Short Sale My Home
We’ve covered When Should I Short Sale My Home before but it’s a question that’s worth reviewing, especially given the recent changes in the short sale process. The answer is roughly the same. If you get a foreclosure notice, don’t panic, here’s 3 ways to respond to a foreclosure notice.
If you are using your savings to pay your mortgage (or lost your job or will lose your ability to pay the mortgage) then it’s likely time to short sale and do it now. Here’s 3 reasons you need to short sale ASAP!
3 Answers To When To Short Sale Your Home
- The banks/lenders/investors are getting more aggressive. They aren’t letting people ride out years of payments anymore. While there are some that can tie up the process, overall, they are moving much quicker when you get behind and VERY fast if they find out that you are unemployed.
- The debt forgiveness act was extended one year. There’s no gaurantee that this “easy” button for the tax question will be around after 2013.
- The real estate market is improving. This is actually great news. The only challenge is that it will likely leave some people as “tweeners” or people stuck in the middle of an improving market that didn’t improve enough for them to sell as a short sale. See the closer you are to breaking even with the bank, the more likely they are to tell you to suck it up and pay it since their loss is much less. Right now many areas of the country are almost completely out of the woods, while Detroit real estate and surrounding areas (and other similiar areas still have a few pockets).
There are other solutions that can often be better than a short sale, but if you are upside down and pulling from savings, then the answer is NOW to the question of When Should I Short Sale My Home.